Compulsion Games is now the publisher of South of Midnight on Steam

Compulsion Games has replaced Xbox as the listed publisher of South of Midnight on Steam, a change spotted by users on Bluesky and reported by both Eurogamer and GameSpot. The shift strongly suggests that Compulsion's separation from the Xbox division is now complete.

As part of the Xbox restructuring led by Asha Sharma, Compulsion Games regained its independence alongside Double Fine — both studios were given back ownership of their franchises. Compulsion confirmed it retained the rights to Contrast, We Happy Few, and South of Midnight. The studio also said it was looking for new work shortly after the split was announced. One wrinkle: South of Midnight is still listed as a Microsoft/Xbox product on the PlayStation and Xbox storefronts, and Compulsion hasn't officially confirmed the Steam publisher change or explained the discrepancy.

Compulsion Games was acquired by Microsoft in 2018 and had been part of Xbox Game Studios ever since, releasing South of Midnight as a day-one Game Pass title in spring 2025. The game earned praise for its stop-motion visual style, its Deep South gothic atmosphere, and the way its original score was woven directly into gameplay — but reviews were mixed overall, with critics pointing to shallow combat and platforming as weak spots. Eurogamer gave it three stars; GameSpot was more enthusiastic, calling it one of the best Xbox games of 2025.

For players who had been holding off on a purchase out of reluctance to put money through Xbox, the Steam publisher change makes South of Midnight a more straightforward buy that goes directly to Compulsion. The studio is currently independent and actively seeking new projects, so sales of its back catalogue carry more weight than usual right now.