South of Midnight Director Discusses Doubts Over Xbox’s Development Strategy

The director behind South of Midnight, David Sears, has shared candid thoughts regarding his time working under Xbox, revealing he was constantly concerned that the project’s funding was unsustainable. In an interview with MinnMax, as reported by Game Developer, Sears admitted that if he had been in a position of authority at Xbox, he likely would not have approved the funding for his own game.

The looming threat of budget cuts

Sears explained that during development, he operated under the persistent anxiety that Microsoft would eventually “turn off the tap.” He described this feeling with the analogy, “There’s always a night when Rome burns,” noting that while he was grateful for the opportunity, he knew there was a limit to how long Xbox would support projects outside of its mainstream focus. According to Sears, Xbox leadership at the time aimed to diversify its library with non-mainstream titles, a strategy he now views as lacking a sustainable long-term vision.

Reflecting on the scale of Xbox’s acquisitions and spending, Sears expressed discomfort with the pressure that came with massive corporate backing. “I want less,” he told MinnMax. “I don’t want to feel the weight of the obligation of a giant budget, or an army of six hundred to be responsible for.”

A ‘more humane’ approach to divestiture

Sears departed from Compulsion Games in 2025, prior to the studio being cut loose from Microsoft. Despite his skepticism regarding the sustainability of the initial funding, he praised the company for its handling of the studio’s exit. While many expected a total closure, Microsoft allowed Compulsion to move forward as an independent entity. Sears described this decision as “remarkable and commendable,” suggesting that modern Microsoft is “more humane” than previous iterations of the company.

Why it matters

For gamers, these comments offer a rare look behind the curtain at how shifting corporate strategies directly impact the titles they play. The account highlights the fragility of “prestige” or “diversified” gaming initiatives that rely on large-scale funding, which can be withdrawn quickly when priorities shift at the executive level.

Players who enjoyed the unique direction of South of Midnight—which garnered awards including a BAFTA and a Peabody—should keep an eye on how independent studios transition after parting ways with major publishers. While the change in ownership can lead to uncertainty regarding future support, it also marks a new chapter for the developers as they regain independence from the “infinite money” approach that Sears felt was inherently unstable.