South of Midnight Director Criticizes Xbox Funding Decisions
David Sears, creative director of South of Midnight, expresses doubts over Xbox's decision to fund his game, amid cost-cutting measures at the company.
In a surprising turn of events, David Sears, the creative director behind the critically acclaimed game 'South of Midnight', has publicly questioned the wisdom of Xbox funding his latest project. Sears, who considers 'South of Midnight' a generational game, believes it will elevate the prestige of Xbox, yet reportedly expressed doubt about the sustainability of such funding under current leadership.
Asha Sharma, the newly appointed CEO of Xbox, has been implementing significant cost-cutting measures since taking the helm. These measures include layoffs and the divestment of certain studios, which has led to concerns about the future of Xbox-funded projects like 'South of Midnight'. Sears, known for his passion and dedication to his work, shared his reservations about the direction of Xbox's funding strategy, suggesting that if he were in charge, he might not continue supporting similar games.
The game 'South of Midnight', an action-adventure title set in the American Deep South, was released in 2025, marking a seven-year gap since Compulsion Games' last release. This extended development period may have contributed to the creative director's reflections on the game's funding. Compulsion Games, the studio behind 'South of Midnight', was one of several studios divested by Sharma as part of her 'reset' of Microsoft's video game business. This reset saw job losses, studio separations, and project cancellations, reshaping the landscape of Xbox's game development ecosystem.
Interestingly, despite the divestiture, Compulsion Games retained ownership of its games and publishing rights, allowing them to continue their work independently. The studio also secured an unspecified amount of financial resources and all its intellectual property, positioning them well for future collaborations. In contrast, other studios such as Ninja Theory and Arkane Lyon faced different outcomes following Microsoft's restructuring.
Sears' comments come at a time when Microsoft has been making strategic moves to bolster its Xbox Game Pass offerings, having previously invested billions in acquiring studios and franchises. However, the recent changes under Sharma's leadership suggest a shift towards more conservative spending, which could impact the types of games Xbox chooses to fund in the future.
What we know
- - Xbox funded and published 'South of Midnight' in 2025. 123
- - Sears expressed doubt about the sustainability of Xbox funding games like 'South of Midnight'. 23
- - Asha Sharma is the new Xbox CEO and has implemented cost-cutting measures. 12
- - Compulsion Games was divested by Sharma as part of a broader restructuring. 123
- - Compulsion Games retained ownership of its games and publishing rights after leaving Xbox. 23
- - 'South of Midnight' received several nominations and won multiple awards, including a BAFTA. 3
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Trust Score report
- confirmed
Xbox funded and published the game South of Midnight in 2025.
90% · supported by 3 - confirmed
Sears stated he likely would not have continued funding for games like South of Midnight if he were in control of Xbox funding.
90% · supported by 3 - likely
Asha Sharma is the new Xbox CEO and has implemented cost-cutting measures including layoffs and studio divestures.
82% · supported by 2 - likely
Sears expressed concern about the sustainability of Xbox funding games like South of Midnight.
82% · supported by 2 - likely
Compulsion, Sears' studio, was among the studios divested by Sharma.
68% · supported by 1 - likely
Compulsion Games separated from Xbox due to CEO Asha Sharma's 'reset' of Microsoft's video game business.
68% · supported by 1 - likely
The reset resulted in job losses, studio separations, and project cancellations.
68% · supported by 1 - likely
Compulsion Games was spun off from Microsoft as part of Xbox's recent restructuring.
67% · supported by 1 - likely
South of Midnight is an action-adventure game set in the American Deep South.
68% · supported by 1 - likely
David Sears, the game's creative director, considers South of Midnight a generational game.
68% · supported by 1 - likely
Sears believes South of Midnight will help elevate the prestige of Xbox.
68% · supported by 1 - likely
Microsoft previously spent billions on buying studios and franchises to support Xbox Game Pass.
68% · supported by 1 - likely
Phil Spencer and Sarah Bond were the previous leaders at Microsoft responsible for the spending spree.
68% · supported by 1 - likely
South of Midnight was released in 2025, seven years after Compulsion Games' previous game.
68% · supported by 1 - likely
Microsoft acquired Compulsion Games in mid-2018 as part of efforts to strengthen Game Pass offerings.
68% · supported by 1 - likely
Compulsion Games retained ownership of its games and publishing rights after leaving Xbox.
68% · supported by 1 - likely
Other studios such as Ninja Theory and Arkane Lyon faced different fates after Microsoft's restructuring.
68% · supported by 1 - likely
Compulsion Games is seeking collaboration with other partners.
67% · supported by 1 - likely
Compulsion Games was acquired by Microsoft prior to the release of 'We Happy Few' in 2018.
67% · supported by 1 - likely
South of Midnight received several nominations and won multiple awards, including a BAFTA, after its launch in 2025.
67% · supported by 1 - likely
Compulsion Games retained all its intellectual property and an unspecified amount of financial resources upon spinning off from Microsoft.
67% · supported by 1
