Compulsion Games is now listed as the publisher of South of Midnight on Steam, marking what appears to be the final step in the studio's separation from Xbox. The change signals the completion of a major restructuring that began after Microsoft's 2023 studio closures, giving Compulsion full control over its acclaimed action-adventure title.

South of Midnight, the musical action-adventure game from Compulsion Games, has quietly changed its Steam publisher listing from Xbox Game Studios to Compulsion Games itself. The update, first spotted by Kotaku, suggests the developer has fully detached from Microsoft's Xbox division, a process that began amid the company's sweeping studio closures and restructuring in 2023.

Compulsion Games was one of several studios affected by Microsoft's layoffs and shutdowns, which included the closure of Tango Gameworks and Arkane Austin. While Compulsion survived, it has since operated with increasing independence. The Steam listing change is the clearest signal yet that the studio now controls its own publishing rights, at least on PC.

The move has practical implications for players. South of Midnight, previously an Xbox console exclusive, is now available on Steam without the usual Xbox branding. This could pave the way for broader platform availability, though no official announcements have been made. The game itself, praised for its handcrafted visual style and folk-inspired soundtrack, has been a critical success since its release.

Industry observers note that the shift aligns with a broader trend of Microsoft loosening its grip on acquired studios, allowing them to self-publish or pursue multi-platform strategies. For Compulsion, the change means greater creative and financial autonomy, though the studio's long-term relationship with Xbox remains unclear.

Coverage of the story was led by Kotaku, with subsequent reports from GameSpot, IGN, Eurogamer, and VGC largely agreeing on the facts. VGC framed the move as Compulsion having "cut ties with Microsoft," while IGN described the separation as "seemingly complete."

• Compulsion Games is now listed as the Steam publisher of South of Midnight, replacing Xbox Game Studios.
• The change signals the completion of the studio's separation from Microsoft's Xbox division.
• South of Midnight remains available on Steam, with no announced changes to console availability.
• The move reflects a broader trend of Microsoft allowing acquired studios greater independence.

This synthesis was derived and curated on the fly by TDGN’s newsroom from 5 outlets’ breaking reports, and updates automatically as coverage develops. It may contain errors — the outlets’ original reporting is linked below.