David Sears, the former director of South of Midnight, says he was concerned throughout development that Microsoft would eventually stop funding the game. Speaking to MinnMax host Ben Hanson, Sears said he did not know when that might happen, but expected the possibility of a sudden cutoff.

Sears said Xbox leaders had described a goal of building a broader portfolio of non-mainstream games to diversify the platform’s library. He also recalled seeing Microsoft fund many games and studios, and said he preferred not to be responsible for a project with a huge budget or a large team. In hindsight, he considered the funding approach unsustainable and believed it would lead to a startling outcome.

Although Sears said he would not have funded South of Midnight if he had been making the decision at Xbox, he expressed appreciation for the opportunity to work on it. He left Compulsion in 2025 and was no longer at the studio when Microsoft later allowed it to become independent rather than closing it. Sears praised that decision, describing Microsoft as more humane than it had been in the past.

South of Midnight received several awards, including a Games for Impact award at The Game Awards, a Change Award, a D.I.C.E. award, a BAFTA and a 2025 Peabody Award.

Sources: Game Developer.