David Sears, creative director for Compulsion Games' recently released title South of Midnight, has expressed doubts about the business wisdom of Xbox funding such projects, even as he acknowledges the platform holder's support.
In an interview with MinnMax, Sears discussed Xbox's strategy of funding games like South of Midnight and Double Fine's Psychonauts 2, which he and Xbox leadership knew would likely not be profitable but were intended to enhance Xbox's prestige and cultural legacy. Sears recalled warning colleagues during development that the "money tap" could be shut off, leading to "traumatic results downstream."
When asked if he would have funded South of Midnight himself, Sears replied, "Yeah, probably." He elaborated, stating that while he was committed to making the game, he recognized its funding model as unsustainable in hindsight. He noted that during a "golden era" of studio funding, he often felt a sense of unease, anticipating a downturn.
Compulsion Games, also known for We Happy Few, was acquired by Microsoft in 2018. Following a recent restructuring by Xbox, Compulsion was spun out, retaining its intellectual property and an undisclosed financial runway. The studio is now seeking new partnerships for future projects. Sears described the current Microsoft as more "humane" than its '90s iteration, citing the studios' ability to spin off rather than face outright closure as evidence.