South of Midnight Director: Xbox Funding Was ‘Unsustainable’

David Sears, the creative director of South of Midnight, expressed his concerns about Xbox’s development funding. He mentioned that he would probably have turned off the “money tap” earlier himself. In a recent interview with IGN, Sears described the previous era of Xbox funding as unsustainable, adding that “there’s always a night when Rome burns.”

Sears’ comments come from someone who directly benefited from that funding. Compulsion Games developed South of Midnight, and Xbox Game Studios published it on April 8, 2025.

A Beneficiary Questions the Model

Sears didn’t label the funding as a mistake on his part. He stated that if he were in charge of Xbox, he wouldn’t have financed the game himself. According to Pure Xbox, he was “always worried” about how long this funding arrangement could last.

His most straightforward assessment, as quoted by Pure Xbox, was: “It just seems like, in hindsight at least, it was unsustainable.”

Both Video Games Chronicle and iXBT.games highlighted the same angle: a developer admitting he wouldn’t have approved his own project if he were the publisher and that he anticipated the spending would eventually stop.

Why It Matters

Sears describes the “money tap” as a reality his studio operated under, rather than a surprise they discovered later. This perspective offers a candid, self-aware look from within a first-party studio, making it more impactful than outside speculation about Xbox’s budget issues.

The reports don’t provide specific budget figures, sales data, or any announcements regarding changes to Xbox’s funding. The story relies on Sears’ own characterization without additional details from the sources reviewed.

Pure Xbox pointed out that its staff “absolutely loved” South of Midnight at launch. This serves as a reminder that the game received positive feedback from some critics, even as its financing model is now being questioned.

Community Pulse

No community sentiment signals were recorded for this story, so there are no Steam reviews or forum posts to reference. The closest recorded reaction comes from Pure Xbox, whose staff said they “absolutely loved” the game. This sentiment aligns with Sears’ comments on its funding. We’ll share player reactions as they come in.

What To Watch

• Xbox’s response: Whether Microsoft or Xbox leadership addresses Sears’ comments or the funding model he described.
• Compulsion Games’ next steps: Any announcements about the studio’s upcoming project, which would indicate how it’s moving forward after the funding era Sears discussed.
• Other first-party voices: Whether developers at other Xbox studios share similar views on the previous spending strategy.