David Sears, creative director at Compulsion Games, says he is grateful that Microsoft funded South of Midnight, but would not have approved the same spending if he had been in charge of Xbox. Speaking to MinnMax, he described the project’s finances as difficult to justify in retrospect.

Sears said he wanted to make the game, but that, looking back, he would have stopped the funding before South of Midnight. He also recalled warning colleagues during a period of generous spending that the situation could not last indefinitely.

The game reportedly involved a team of around 100 people over nearly seven years. Its development and marketing budget was estimated at between $80 million and $100 million, despite its focus on a linear action-adventure rooted in the folklore of the southern United States.

South of Midnight received positive reviews and won awards, including a BAFTA Award and a Peabody Award. However, the source reports that it peaked at fewer than 1,500 concurrent players on Steam at launch and that sales were limited.

Microsoft and Compulsion Games have since separated, with the studio becoming independent. Sears also pointed to a broader change in Xbox’s spending approach, as the company reshapes its games division. The source reports that the restructuring included more than 3,200 job cuts across Microsoft’s gaming business.

Sources: Jeuxvideo.com.