South of Midnight Creative Director Would Have Turned Off Xbox 'Money Tap' Earlier, Says Funding Was 'Unsustainable'
David Sears, creative director of South of Midnight, said in a recent interview that he was always worried about the previous era of Xbox's infamous development funding "money tap," and admitted he would probably have turned it off earlier.
David Sears, the creative director of South of Midnight, expressed regret over the game's unsustainable funding from Xbox, stating he would have likely turned off the money tap earlier. The game, published by Xbox Game Studios, launched in 2025 after seven years of development. Despite critical acclaim, South of Midnight was commercially unsuccessful.
Compulsion Games parted ways with Xbox this year following a corporate shake-up led by CEO Asha Sharma. The studio's departure is part of Microsoft's broader strategy to streamline its video game business, resulting in job cuts, studio closures, and project cancellations. Sears admitted that he and others in the industry were always wary of Xbox's generous funding, fearing its abrupt end would have severe consequences.
He expressed a desire to shut off funding for other projects as well, emphasizing that the financial situation was unsustainable. Microsoft's acquisition of Compulsion Games in 2018 was part of a series of deals aimed at bolstering its Game Pass subscription service. The studio worked on several games before launching South of Midnight, including Contrast in 2013 and We Happy Few in 2018. Despite leaving Xbox, Compulsion Games retains ownership of its games and publishing rights.
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