Developer Compulsion Games is now independently publishing its action-adventure title, South of Midnight, on Steam. This marks a significant milestone in its separation from the Xbox division. Alongside Compulsion, Double Fine also became independent as part of a substantial restructuring initiative within Xbox.
Xbox’s Structural Changes and Studio Independence
The restructuring has seen more organisations leaving the Xbox umbrella, with Ninja Theory and Undead Labs departing to new, yet undisclosed ownership. Meanwhile, Arkane Lyon was in discussions to separate from Xbox, though the current status remains unclear. As a result of these changes, Compulsion Games took charge of its intellectual properties, including Contrast, We Happy Few, and the award-winning South of Midnight.
In a statement released at the time, Compulsion expressed gratitude for the support from Xbox over the years, noting how it has facilitated bringing their games to a global audience. Looking ahead, they are eager to forge their path independently and continue crafting unique gaming experiences.
Publishing and Platform Discrepancies
While South of Midnight appears under Compulsion’s name on Steam, it is still listed with Microsoft/Xbox as the publisher on PlayStation and Xbox stores. The reasons for this discrepancy remain uncertain, and efforts to get clarification from Compulsion Games are ongoing.
Impact of Xbox Reorganisation
The widespread changes in Xbox, led by Asha Sharma, have created significant shifts in the company, even affecting developers like Bethesda Game Studios, creators of The Elder Scrolls 6. This upheaval has reportedly impacted employee morale, as many await clarity on their job status amid layoffs expected to hit 1,600 people by the upcoming summer.
Reception of South of Midnight
Released in spring 2025, South of Midnight received lukewarm reviews. It was praised for its striking visuals, stop-motion animation style, and the integration of music with gameplay. However, the overall experience was criticized for its lack of depth in gameplay. The game was rated three stars by reviewer Chris.
Reporting based on coverage first published by eurogamer.net.