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
Trust Score report
Likely accurate — probability of truth 72%, weighted across 21 claims from 3 independent outlets.
- confirmed Xbox funded and published the game South of Midnight in 2025. (90%)
- 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%)
- likely Asha Sharma is the new Xbox CEO and has implemented cost-cutting measures including layoffs and studio divestures. (82%)
- likely Sears expressed concern about the sustainability of Xbox funding games like South of Midnight. (82%)
- likely Compulsion, Sears' studio, was among the studios divested by Sharma. (68%)
- likely Compulsion Games separated from Xbox due to CEO Asha Sharma's 'reset' of Microsoft's video game business. (68%)
- likely The reset resulted in job losses, studio separations, and project cancellations. (68%)
- likely Compulsion Games was spun off from Microsoft as part of Xbox's recent restructuring. (67%)
- likely South of Midnight is an action-adventure game set in the American Deep South. (68%)
- likely David Sears, the game's creative director, considers South of Midnight a generational game. (68%)
- likely Sears believes South of Midnight will help elevate the prestige of Xbox. (68%)
- likely Microsoft previously spent billions on buying studios and franchises to support Xbox Game Pass. (68%)
- likely Phil Spencer and Sarah Bond were the previous leaders at Microsoft responsible for the spending spree. (68%)
- likely South of Midnight was released in 2025, seven years after Compulsion Games' previous game. (68%)
- likely Microsoft acquired Compulsion Games in mid-2018 as part of efforts to strengthen Game Pass offerings. (68%)
- likely Compulsion Games retained ownership of its games and publishing rights after leaving Xbox. (68%)
- likely Other studios such as Ninja Theory and Arkane Lyon faced different fates after Microsoft's restructuring. (68%)
- likely Compulsion Games is seeking collaboration with other partners. (67%)
- likely Compulsion Games was acquired by Microsoft prior to the release of 'We Happy Few' in 2018. (67%)
- likely South of Midnight received several nominations and won multiple awards, including a BAFTA, after its launch in 2025. (67%)
- likely Compulsion Games retained all its intellectual property and an unspecified amount of financial resources upon spinning off from Microsoft. (67%)
Sources
- GameSpot — South Of Midnight Director Says He Would Not Have Funded The Game
https://www.gamespot.com/articles/south-of-midnight-director-says-he-would-not-have-funded-the-game/ - IGN — South of Midnight Creative Director Would Have Turned Off Xbox 'Money Tap' Earlier, Says Funding Was 'Unsustainable'
https://www.ign.com/articles/south-of-midnight-creative-director-wouldnt-have-funded-the-game - Kotaku — South Of Midnight Director Says He Doesn’t Think Xbox Should Have Funded It
https://kotaku.com/creative-director-says-he-wanted-to-make-south-of-midnight-but-doesnt-think-xbox-should-have-funded-it-2000752408