We Happy Few and South of Midnight developers Compulsion Games have announced their complete separation from Microsoft and Xbox, after completing a management buyout. They now once again own the rights to all their own original intellectual properties. Among other things, this means you can buy South of Midnight – summed up by Brendy (RPS in Peace) as “a beautiful folk tale” and a “simple and unambitious” action-adventure – while participating in the BDS boycott against Microsoft’s Israeli military connections. When you buy the Steam version of South of Midnight, all your money (after Valve’s revenue cut) will go to Compulsion.
Last July, Microsoft announced it was laying off about 3,200 people, while spinning off or selling five of its best-known studios. Compulsion aside, Psychonauts developers Double Fine have regained their independence, while Ninja Theory and Undead Labs have been acquired by unknown parties. Arkane, a disgraced promoter, is currently debating the terms of his exit in accordance with French labor law.
“We confirm that we are recovering all our publishing rights,” said Guillaume Provost, CEO of Compulsion. Beat of games this week, with the caveat that it will take longer to transfer ownership of Compulsion’s games to platforms other than Steam, such as Switch and PlayStation.
Provost wouldn’t comment on the exact terms of Compulsion’s management buyout, except to say it could have been worse. “Everything is relative,” he said. “Compared to the fact that we all lost our jobs on July 6, this is a very good deal. I would say it was a gracious departure on Microsoft’s part.” Microsoft, in one of its brightest moments, provided Compulsion and Double Fine with a “lead” (i.e., financial assistance) for their continued careers as independents.
Provost was unable to confirm how many Compulsion employees remain. A few people left or started looking for other jobs when Provost told them the studio might be closed, although most of the team leaders apparently stayed.
“I made this deal first and foremost for the team,” Provost told Gamebeat. “I asked the team, ‘Do you want to stay together?’ The team told me we would rather eat rocks and drink gasoline than be separated.”
Provost is now meeting with other companies to discuss opportunities, including potentially collaborations on other licenses, even as the rest of Compulsion continues to work on an unannounced project they were creating for Microsoft, before the Great Xbox Reset. Provost and Compulsion’s other top brass are understandably thinking hard about what they can afford to do now that Compulsion no longer has access to Microsoft’s resources. “I just want to make sure we set the team up for success,” he said. “We’re going to take it slow. We’re going to meet everyone.”
Provost noted that Compulsion has been in a situation like this before: They were founded in 2009, in the middle of a global recession. “Starting projects when times are tough means companies start building the right bones,” he said. “They understand the need to be frugal and frugal because of the economic environment. I think we’ll have really strong bones.”
I hate talk about lean managementmyself. I imagine surviving members of Compulsion might read this and wonder if they are considered “bones” or excess fat and residual tissue. Still, it’s great to see Compulsion get a fresh start. As for their existing catalog, I haven’t played South of Midnight but have read warm responses to the game’s depictions of black culture in the Deep South. I’m interested to compare it to We Happy Few, a very British dystopia marinated in Monty Python and A Clockwork Orange.
As for other former Microsoft studios, Double Fine I said they will share more about their own futures later today. We’re still waiting for news from Ninja Theory, Arkane and Undead Labs.
