South of Midnight's director says Xbox's funding approach was unsustainable

[Darren]

A director whose game was funded by Xbox has given a frank view of the company's past spending. Push Square reports that David Sears, director of South of Midnight at Compulsion Games, told the Minnmax YouTube channel that Xbox's approach was commendable but unsustainable

Compulsion Games became independent from Microsoft again in 2026. Sears said Xbox backing risky projects like South of Midnight and Double Fine's Keeper was admirable, but that the period of seemingly infinite money had to end

He said Xbox was funding a lot of games, and admitted he had told people that South of Midnight could be terrible. Asked whether he would have cut his own game ahead of others, he said yes, because he is not completely selfless

There are no official sales figures for South of Midnight, but analyst firm Alinea estimated around 16,000 PS5 sales by April 2026. Phil Spencer has since been replaced as head of Xbox by Asha Sharma

It is unusual to hear a director speak so openly about whether their own game should have been funded. His view reflects a wider shift across the industry towards fewer, safer projects. Unusual games like South of Midnight may become rarer as a result

Was Xbox right to fund risky creative games? And will the industry lose its most unusual games as budgets tighten?

South Of Midnights Director Wouldnt Have Funded It Says Xboxs Approach Was Unsustainablewww.pushsquare.com