Compulsion Games has completed its management buyout from Microsoft, regaining full ownership of its intellectual properties including South of Midnight, We Happy Few, and Contrast. The Montreal studio, one of several spun out during Xbox's July restructuring and thousands of layoffs, now lists itself as the publisher on Steam for South of Midnight, with proceeds after platform cuts going directly to the team. CEO Guillaume Provost confirmed the deal to GamesBeat, noting it closed around August 11 and came with some financial runway from Microsoft, though exact terms remain undisclosed.

Provost emphasized the priority was keeping the team intact, stating staff preferred "eat[ing] rocks and drink[ing] gasoline" over splitting up. Most team leaders stayed on despite some departures during earlier uncertainty. The studio continues work on an unannounced project originally started under Microsoft, while Provost meets with potential partners for co-development or support roles. Ownership transfers for non-Steam platforms like Switch and PlayStation are still pending.

The studio, founded in 2009 during a recession, now operates independently with fewer resources. Provost described building "solid bones" through thriftiness. Double Fine similarly regained independence, while Arkane, Ninja Theory, and Undead Labs face separate outcomes.