South of Midnight director was ‘always worried’ about ‘Rome burning’ at Xbox

South of Midnight’s creative director David Sears has offered a candid reflection on Xbox’s approach to game funding, admitting that he would not have approved the project’s budget if he held decision-making power at the company. In a recent interview with MinnMax, Sears revealed that he harbored significant concerns throughout the game’s seven-year development about when Microsoft would inevitably cut funding.

“There’s always a night when Rome burns,” Sears explained, describing his constant worry that Xbox leadership would eventually close what he called the “money tap.” He characterized the previous era of Xbox’s generous spending on diverse, non-mainstream titles as fundamentally “unsustainable,” particularly in hindsight following the game’s poor commercial performance despite critical acclaim.

South of Midnight launched in 2025 as an Xbox Game Studios title from Compulsion Games, receiving widespread critical praise but failing to generate expected revenue. The disconnect between critical and commercial success became emblematic of broader questions about Xbox’s spending strategy. Under previous leadership including Phil Spencer and Sarah Bond, the company funded numerous projects across its portfolio to diversify offerings beyond mainstream franchises.

Compulsion Games regained independence this year as Xbox underwent significant restructuring under CEO Asha Sharma’s “reset” initiative. The studio’s separation was part of sweeping changes that included staff reductions, studio closures, and project cancellations across Xbox Game Studios. Sears’ candid assessment reflects industry-wide debates about sustainable funding models and whether investments in prestige titles align with commercial expectations—questions that have become increasingly relevant for Microsoft’s gaming division.

Sources