Developer Compulsion Games is now listed as the publisher of its beautiful, musical action adventure game South of Midnight on Steam, suggesting that its full detachment from the Xbox division is complete.

Compulsion Games was one of two studios that regained its independence as part of wide-ranging Xbox restructuring recently - the other studio being indie standard bearer Double Fine. Studios Ninja Theory and Undead Labs also left the Xbox division under still undisclosed new ownership. Arkane Lyon was in talks to exit Xbox, but it's unclear what the situation is today.

As part of the disembarkation, Compulsion Games was given ownership of its gaming franchises. "As part of this transition, we will retain the rights to Contrast, We Happy Few, and our award-winning South of Midnight," the studio wrote when the Xbox news was first announced.

"We're grateful for the years we spent with Xbox," the message went on, "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." Days later, Compulsion Games broadcast that it was looking for work.

While South of Midnight is now listed entirely as Compulsion's game on Steam (spotted by Bluesky user Michael), the game is listed as being published by Microsoft/Xbox on the PlayStation and Xbox stores. Whether this is a delayed reaction to an updated situation, or a suggestion of something else, it's as yet unclear. I've contacted Compulsion Games in the hope of clarification.

Asha Sharma's drastic Xbox shake-up has affected all areas of the business, even the teams making the core franchises Sharma intends to reorganise the business around - teams like Bethesda Game Studios making The Elder Scrolls 6. Morale is said to have plummeted, as people wait to see whether they're one of the 1600 still to be laid off between now and next summer.

South of Midnight was released in spring 2025 to middling reviews. Adulation was heaped on the game's visual presentation, its stop-motion-style animation, and in the way music was interwoven with the gameplay, but shallow gameplay let the package down. Chris gave South of Midnight three stars in our review.