Compulsion Games has completed a management buyout from Microsoft, becoming independent again after eight years within Xbox Game Studios. The deal matters because the Montreal developer has regained ownership and publishing rights to its games, meaning future revenue from titles such as South of Midnight will go to Compulsion rather than Microsoft.

Microsoft acquired Compulsion in 2018, but the studio was later affected by Xbox’s wider restructuring and job cuts. Chief executive Guillaume Provost said the buyout covers the studio, its staff and its original intellectual property, including Contrast, We Happy Few and South of Midnight; ownership has already changed on Steam, while transfers on other storefronts remain in progress.