Compulsion Games is now listed as the publisher of South of Midnight on Steam, indicating that its separation from Xbox may be complete. The change matters because it supports reports that the studio has regained independence during a broader restructuring of Microsoft’s Xbox division, while retaining control of its own game franchises.

Compulsion and Double Fine were reported to have become independent, while Ninja Theory and Undead Labs also left Xbox under undisclosed ownership; Arkane Lyon’s position remains unclear. South of Midnight is still published by Microsoft/Xbox on PlayStation and Xbox stores, so it is uncertain whether those listings have simply not been updated; the game launched in spring 2025 to mixed reviews, praised for its visuals and music but criticised for shallow gameplay.