Compulsion Games and Double Fine have announced "Independence Day" in collaboration with Xbox

As Microsoft undergoes significant restructuring, two game developers, Compulsion Games and Double Fine, are transitioning back to independence from their previous association with Xbox. These changes follow reports indicating several studios were under threat of closure, with Microsoft considering substantial cuts and asset sales.

Last month, rumors emerged about potential closures involving developers like Compulsion Games, known for titles like We Happy Few and South of Midnight, and Double Fine, led by Tim Schafer. Ninja Theory was also reported to face risks.

Compulsion Games has openly stated its transition to independent management, ensuring ownership over its key titles: Contrast, We Happy Few, and South of Midnight. The studio outlined its history as an independent entity, emphasizing its commitment to crafting unique gaming experiences.

Founded in 2009, Compulsion Games began as a small independent team passionate about creating handcrafted gaming narratives. Now returning to independence after our period with Xbox, we maintain rights to Contrast, We Happy Few, and South of Midnight. Our time with Xbox was invaluable, providing global outreach for our games. As we move forward independently, we remain focused on developing distinct games that resonate emotionally with players.

Double Fine also commented on the move back to independence via a blog post titled "Independence Day," expressing gratitude for the collaborative years with Xbox and the preservation of its cultural and historical essence.

Double Fine Productions reclaims its status as an independent studio. We cherish the seven years spent with Xbox, which concluded with a mutually favorable agreement returning our game ownership. Your messages of support mean a lot to us. Future announcements will follow.

Tim & All at Double Fine.

These announcements follow a significant workforce reduction at Xbox, confirmed earlier today, July 6th. Microsoft disclosed that it would let go of approximately 3,200 employees, constituting about 20% of its workforce. Five studios are set for divestment, with Double Fine and Compulsion Games regaining independence and ongoing acquisition processes for Ninja Theory and Undead Labs. Meanwhile, Arkane Lyon has begun consultations under French labor laws.