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Compulsion Games To Retain IP Rights After Going Independent

The same arrangement applies to Psychonauts developer Double Fine.

The week is only getting started, and Xbox has already made headlines with what its CEO, Asha Sharma, called "the most significant restructuring in Xbox history," resulting in thousands of layoffs and the departure of four game studios, which are being sold or transitioning back to independent ownership.

Compulsion Games, the studio behind South of Midnight that was acquired by Xbox in 2018, is among those affected. The developer announced on social media that it's returning to independent status and will retain the rights to its catalog of games, including Contrast, We Happy Few, and the award-winning South of Midnight.

"We're grateful for the years we spent with XBOX, for the support they provided our team, and for the opportunity to bring these games to players around the world. As an independent studio, we're excited to continue building the distinctive games that define Compulsion while taking the next steps in our journey.

Our immediate priority is to support our team throughout this transition period. We are confident in the future of Compulsion Games and look forward to this next chapter where one thing will remain constant: we will create unique games that tell important stories, all with the goal of touching the hearts and minds of our players."

Double Fine, acquired by Xbox in 2019, is also becoming independent again, reportedly retaining ownership of the Psychonauts IP, among others.

However, Ninja Theory and Undead Labs have "entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3". Meanwhile, Arkane Studios' management is beginning "required consultation with its Works Council to review potential strategic options". The status of Marvel's Blade remains unknown.

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