Compulsion Games is now listed as the publisher of its 2025 award‑winning title South of Midnight on Steam, replacing Xbox Game Studios. The change, first spotted by indie developer Michael Klamerus on Bluesky and confirmed by an IGN Discord member, suggests the studio’s separation from Xbox—one of four spin‑outs during the company’s recent “reset”—has been fully realized.
While Compulsion Games has taken over publishing duties, Xbox Game Studios still appears as the publisher for other recently independent studios, including Double Fine’s Psychonauts 2, Undead Labs’ State of Decay 3, and Ninja Theory’s Senua, whose new owners have yet to be disclosed. The shift means future purchase revenue for South of Midnight will flow directly to Compulsion Games rather than Microsoft.
The move underscores the broader restructuring at Xbox after massive layoffs and tepid early sales for titles like Halo: Campaign Evolved. Nonetheless, the platform looks ahead to a slate of upcoming releases—including Gears of War: E‑Day, Call of Duty: Modern Warfare 4, Forza Horizon 6, and the long‑awaited Fable—offering a hopeful outlook for both developers and fans.
