Compulsion Games and Double Fine Productions were recently divested from Xbox, both returning to the independent status they once held, along with their respective intellectual properties. This is a distinct situation from Undead Labs and Ninja Theory, which Xbox sold to new publishers.
Both studios must now find a path to financial stability, and while Xbox provided both with “runway” money for their next respective projects, game development is extremely expensive and maintaining a major studio without a parent company means that each individual project must be completed on time and, crucially, must be a hit.
Compulsion Games is still waiting for that hit, with Contrast, We Happy Few, and South of Midnight all receiving mediocre reviews and mediocre sales figures. With the (relative) security offered by Xbox gone, people are rightly worried about the future of the Montreal-based studio.
Compulsive gaming is open to supporting work
In a cautious move, Compulsion has announced its intention to become a support studio in the near future. In a post on LinkedIn, the studio announced that it was open to leveraging its experience to support other projects.
“As Compulsion Games returns to its roots as an independent developer, we are expanding opportunities to collaborate with studios across the gaming and entertainment industry,” the post said. “We invite partners to tap into the talent and creativity of the award-winning team behind South of Midnight, a game honored with a BAFTA Award, a Peabody Award, seven Canadian Game Awards and recognized on multiple 'Best Games of 2025' lists.”
South of Midnight, despite a lukewarm reception from critics, received several awards, mostly due to Compulsion's creative approach to the game's subject matter.
“With deep experience creating acclaimed original IP, we bring our artistry, technical expertise and collaborative approach to every project,” the post continues. “We are excited to support the development of memorable experiences that engage and entertain players around the world.”
Compulsive Gaming grew in size under Xbox, growing from 40 people who originally worked on We Happy Few to over 100 employees in recent years. It's very difficult to support a studio this big without guaranteed commercial success; the next few years will be crucial for the studio's future.
- Date founded
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May 1, 2009
- Head office
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Montreal, Canada
