Compulsion Games and Double Fine Productions were recently sold off of Xbox, returning them to the independent status they once had, along with their respective intellectual properties. This is a different situation from Undead Labs and Ninja Theory, which Xbox sold to new publishers.
Now both studios must find their way to financial stability, and while Xbox has provided both studios with “runway” funding for their next projects, game development costs are extremely high and maintaining large studios without a parent company means that every single project must be completed on time and, critically, successful.
Compulsion Games is still waiting for hits like Contrast, We Happy Few, and South of Midnight, all of which are seeing middling reviews and mediocre sales. With the (relative) safety provided by Xbox gone, people are understandably worried about the future of the Montreal-based studio.
Obsessive Games is open to support your work
In a prudent move, Compulsion has announced its intention to become a supporting studio in the near future. In a post on LinkedIn, the studio announced that it could use its experience to assist with other projects.
“As Compulsion Games returns to its roots as an independent developer, we are expanding our opportunities to collaborate with studios across the gaming and entertainment industries,” reads the post. “We invite our partners to leverage the talent and creativity of the award-winning team behind South of Midnight, a game that won a BAFTA Award, a Peabody Award, seven Canadian Game Awards, and has been recognized on several ‘Best Games of 2025’ lists.”
South of Midnight received several awards, despite receiving a lukewarm response from critics, primarily due to Compulsion's creative approach to the game's subject matter.
“We bring artistry, technical expertise and a collaborative approach to every project, drawing on our deep experience creating acclaimed original IP,” the post continues. “We’re excited to support the development of memorable experiences that engage and delight players around the world.”
Compulsion Games has grown from 40 people who first worked on We Happy Few on Xbox to more than 100 employees in recent years. It is very difficult to support such a large studio without any guarantee of commercial success. The next few years will be pivotal for the studio's future.
- Establishment date
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May 1, 2009
- headquarters
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montreal, canada
