South of Midnight Creative Director Says He Wouldn’t Have Funded the Game
South of Midnight, developed by Compulsion Games, received critical acclaim and won awards following its launch, yet failed to achieve commercial success sufficient to keep the studio viable under Microsoft’s ownership. The disappointing sales performance placed Compulsion Games at risk of closure before the studio transitioned to independence in August 2026.
Following his departure from the company, South of Midnight creative director David Sears recently participated in a nearly 90-minute interview with MinnMax to discuss his experience working on the game and at Compulsion Games. During the conversation, Sears addressed the development costs and funding challenges associated with South of Midnight, making remarks that have drawn particular attention from the gaming community.
Most notably, Sears revealed he would not have personally funded the game, citing concerns about the precarious nature of development funding. He discussed the potential risks that could materialize should Microsoft have decided to withdraw financial support for the project at any point during development, suggesting the game’s substantial budget and development scope made it vulnerable to funding changes.
The situation highlights ongoing tensions within the game industry regarding how critical and commercial success don’t always align, and the challenges mid-sized studios face under larger corporate ownership structures.