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Compulsion Games Completes Management Buyout From Xbox

Regaining game rights plus sales revenue lets the studio pursue outside funding to continue development.

Overview

  • Compulsion confirmed it has completed a management buyout and is once again an independent studio with control of its own operations.
  • The studio says it has regained ownership of its key intellectual property and that publishing rights are being transferred back to Compulsion so sales now support the studio directly.
  • Leadership largely stayed to negotiate the exit though some staff left or began job searches when the studio faced the risk of closure.
  • Part of the team is continuing work on a project that began under Microsoft and Compulsion is exploring partners and cautious funding options as it moves forward.
  • The exit follows Xbox’s broad mid-2026 corporate reset that cut thousands of jobs and led several studios to seek independence or face closure, creating extra financial pressure for newly independent developers.