After six years under the Xbox Game Studios umbrella, Canadian development studio Compulsion Games is returning to independence. As the studio announced in an exciting statement, management has successfully completed the company’s buyback from Microsoft. The move comes shortly after the release of their latest action-adventure game, Midnight South, which has been overshadowed by a wave of closures and reorganizations at Microsoft’s gaming division, despite receiving positive reviews. The team made it clear that remaining on the team would threaten to split or disband the well-coordinated development team.
In an official statement, the studio provided candid insight into the reasons for this bold move. As a result, the team faces a real risk of being spun off or consolidated into other project teams due to Microsoft’s recent group-wide cost-cutting measures. “We would rather eat rocks and drink gasoline than be torn apart,” management commented dramatically on their unity.
In order to retain identity and creative control over future projects, the management team surrounding studio co-founder Guillaume Provost has decided to conduct a management buyout. Both parties remained silent on the specific financial terms of the acquisition, but stressed that the spin-off was mutually agreed upon.
Going forward, the move represents a return to its roots for the studio, which was known for unique indie games like Contrast and We Happy Few before being acquired in 2018. By leaving Xbox, the team will lose the financial security of a multi-billion dollar company, but will regain complete freedom with budgets, trademark rights and distribution platforms. It’s unclear what the Canadian’s next project will be, but the studio promises to stick with handcrafted, atmospheric single-player experiences.
Compulsion Games’ exit highlights the current situation at Xbox Game Studios. After the closure of traditional studios like Arkane Austin or Tango Gameworks, more and more established developers are once again looking to go independent, lest they fall victim to the short-term efficiency goals of big tech companies. Whether this bold move will become a model for other studios remains to be seen, but Compulsion Games’ independence shows how seriously the developer values their creative freedom and team protection.
