Entertainment · Gaming · 41 mins ago
South of Midnight director says Xbox’s funding strategy was unsustainable
South of Midnight creative director David Sears said he probably would not have funded the game if he had been in charge of Xbox’s budget.
Microsoft funded and published the action-adventure game, which is set in the American Deep South and launched in 2025.
Sears said he wanted to make it, but believed Xbox’s wider spending strategy was unsustainable in hindsight.
Microsoft spent heavily to buy studios and build up Game Pass, and Xbox has since cut costs, cancelled games and let some studios go.
Sears said he had worried during development that Microsoft might suddenly stop the funding, leaving damaging consequences for studios.
He also praised the company for allowing Compulsion Games to become independent rather than shutting it down.
Compulsion is now independent, and the sources say it is seeking collaborative work, but its next project has not been confirmed.
South of Midnight creative director David Sears said he probably would not have funded the game if he had been in charge of Xbox.
He said in hindsight that Xbox’s approach to funding games like it was unsustainable and would eventually have a shocking outcome.
Sears said he had worried during development that Microsoft would close the funding tap, with traumatic results for studios.
He also said he wanted to make the game and praised Microsoft for supporting it and giving Compulsion Games creative freedom.
Compulsion Games was spun out from Microsoft as part of Xbox’s restructuring, according to the reports.
- Who
- David Sears, South of Midnight’s creative director, discussed Xbox’s funding approach.
- What
- Sears said he probably would not have funded South of Midnight himself and called the approach unsustainable in hindsight.
- When
- The comments were made in a MinnMax interview; the articles were published on November 2 and 3, 2026.
- Where
- The interview was with MinnMax’s Ben Hanson.
- Why
- Sears said the funding approach seemed unsustainable in hindsight and that he had worried Xbox would close the funding tap.
This story does not have two clearly opposing sides.
Sears said he warned others that Xbox might close the funding tap and that he was worried about the consequences.
Sears left Compulsion Games.
South of Midnight launched and received awards, including a BAFTA, according to Kotaku.
Kotaku published a report on Sears’s comments.
Windows Central, Rock Paper Shotgun and VGC published reports on Sears’s comments.
- Game
- South of Midnight
- Creative director
- David Sears
- Interview
- MinnMax with Ben Hanson
- Studio
- Compulsion Games
- Sears left Compulsion
- March 2025
- Related award
- South of Midnight won a BAFTA, according to Kotaku
5 sources
South Of Midnight Director Says He Would Not Have Funded The Game
South of Midnight's creative director says Xbox's previous spending strategy was 'unsustainable'
"There’s always a night when Rome burns": South Of Midnight director says that Xbox funding it was "unsustainable", at least in hindsight
South of Midnight director says he wouldn’t have funded it if he was Xbox, and he knew ‘Rome would burn’ eventually
South Of Midnight Director Says He Doesn’t Think Xbox Should Have Funded It
What people are saying
There’s always a night when Rome burns
Microsoft encouraged everything
It just seems like, in hindsight at least, it was unsustainable.