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“There’s always a night when Rome burns”: South Of Midnight director says that Xbox funding it was “unsustainable”, at least in hindsight
Developing story first seen 3 hours ago
David Sears, South of Midnight’s former creative director, says Xbox funding the game was unsustainable in hindsight, and that he might have cut it himself if he had been in charge. His comments underline the risks of funding games that build a publisher’s reputation but may not bring strong short-term sales.
Sears said he had worried throughout development that Microsoft might stop funding the project, though he did not know when. He described the game as aimed more at becoming a cultural touchstone than a major moneymaker, and said Microsoft let Compulsion Games become independent rather than closing the studio after it was cut. Sears left Compulsion in March 2025.
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In short
- Sears says South of Midnight’s Xbox funding was unsustainable.
- He feared the money could run out during development.
- Microsoft allowed Compulsion Games to become independent.
How this story developed
- 1 hour ago South of Midnight creative director David Sears says he feared Xbox might withdraw funding during development, and now considers the arrangement unsustainable in hindsight.
- 2 hours ago David Sears, South of Midnight’s former creative director, says Xbox funding the game was unsustainable in hindsight, and that he might have cut it himself if he had been in charge.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Funding ambitious games that build a publisher’s reputation can support creative risk-taking and produce distinctive work that might not be viable under short-term sales targets. Continuing to back a studio through uncertainty, and allowing it to remain independent rather than closing it, may also preserve talent and give the team a chance to find a sustainable path.
The case against
Publishers have to weigh creative and reputational value against finite budgets and the need for reliable returns. If a project’s costs or prospects make continued support unsustainable, ending or changing the arrangement can be a responsible use of resources, even when the game has artistic merit and the decision puts a studio’s future in doubt.
Explained simply
South of Midnight is an adventure game made by Compulsion Games, a studio Microsoft bought in 2018 and placed within its Xbox gaming business. Xbox funds games both to sell copies and to give its platforms a distinctive range of titles.
Games can take years to make and require substantial investment, while their sales are uncertain. When budgets tighten, publishers may reconsider projects whose value lies partly in building a reputation over time. Compulsion’s position also reflects a wider question for studios owned by large companies: whether they will keep receiving funding or be allowed to operate independently.
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