Compulsion Games is no longer published by Xbox Game Studios on Steam for its 2025 action-adventure game South of Midnight; the developer is now listed as its own publisher as of August 2026 [1, 2].
The change follows Compulsion Games’ spin-off from Xbox last month amid a major restructuring that involved thousands of layoffs at Xbox Game Studios [1, 3, 2]. The shift was first highlighted on social media by indie developer Michael Klamerus [1, 2].
South of Midnight, an award-winning title released in 2025, is praised for its Southern Gothic African American themes, cultural authenticity, and accessibility. A Kotaku article described it as “a true-blue Southern Gothic African American love letter that felt like home even though I grew up in the Midwest” [1, 3].
With the spin-off, Compulsion Games now holds full rights to South of Midnight and receives proceeds from its sales, ending Xbox’s publisher role on Steam [3].
Other recent studio spin-offs from Xbox include Undead Labs and Ninja Theory, which remain listed under Xbox Game Studios on Steam despite having been acquired by undisclosed publishers [1, 2]. Xbox still publishes Double Fine’s Psychonauts 2, even though that studio also became independent [1, 2].
The changes mark a significant reorganization for Xbox Game Studios, which shed multiple studios and laid off thousands last month [3, 2]. Compulsion Games’ new independent status reflects the latest of these transitions. The updated Steam listing appeared in early August 2026 [1, 2].
