The separation process between Microsoft and Compulsion Games appears to be officially complete. The publisher information on the Steam store page for South of Midnight, the action-adventure game that won multiple awards in 2025, has quietly changed from "Xbox Game Studios" to the developer itself, Compulsion Games. This change was first pointed out by indie developer Michael Klamerus on social media.
Compulsion Games is one of the four studios spun off during Microsoft's recent "major restructuring." Amidst a wave of layoffs affecting thousands, Microsoft structurally reorganized its gaming division, spinning off several studios into independent entities.
Notably, Xbox Game Studios still appears as the publisher on the Steam page for Double Fine's Psychonauts 2, even though that studio also regained its independence during Microsoft's restructuring. Additionally, Undead Labs' State of Decay 3 and Ninja Theory's Hellblade-related titles still list Xbox Game Studios as the publisher—though both studios have since been acquired by other publishers whose identities have not been disclosed.
Currently, neither Microsoft nor Compulsion Games has issued an official statement regarding the change on the Steam page.