South of Midnight is one of Xbox Game Pass’ best games, yet that’s not enough to save its developer

On June 10, Bloomberg reported that Xbox was planning major layoffs for July. Around the same time, Xbox CEO Asha Sharma and CCO Matt Booty published a pretty dire memo for employees about an impending “Xbox Reset.” A week later, that “reset” is starting to look like a bloodbath: at least three Xbox-owned studios are in danger of being closed, and they’re not the only ones at risk.

One of those studios is Compulsion Games. It developed stylish platformer Contrast and dystopian RPG We Happy Few before being bought by Microsoft in 2018. Since then, Compulsion has only developed one game, 2025’s South of Midnight. It’s one of the best games you’ll find on Xbox Game Pass, and an example of how the service can allow players to discover games that might have been overlooked otherwise.

South of Midnight is an adventure game set in the Deep South. You play as Hazel, a young woman who discovers she’s a magic-using Weaver. After a hurricane rips through her town, she sets out to locate her mother, who was lost in the storm.

What ensues is a modern, gothic folktale. As she searches for her mother, Hazel learns the heart-wrenching backstories of her community members, including her late father, who was shunned by his parents after a childhood tragedy. Even a monstrous alligator becomes a sympathetic character (and a fun boss to fight).

So many colorful characters populate South of Midnight, like a giant talking catfish and a blues legend. They’re often pulled from southern folklore, like the antagonist Huggin’ Molly, who is said to abduct kids after dark if they’re outside alone. South of Midnight’s ability to make its setting feel like an integral part of its world and narrative is what makes the game so special. And that’s not to mention the beautiful stop-motion animation and toe-tappin’ music throughout.

Admittedly, not every element of South of Midnight shines. Its melee combat is perfectly serviceable, but never rises above that. A growing magical arsenal that makes Hazel feel like a Jedi helps, but most encounters end up feeling the same. Fights are easily skipped though, ensuring you can get right back to enjoying South of Midnight’s narrative chops.

In a way, South of Midnight exemplifies Xbox’s awkward position as both a third-party publisher and a company trying to make its own hardware a worthwhile investment. Maybe South of Midnight would have fared better if it was a multi-console release earlier. I think it’s safe to assume no one was rushing to buy an Xbox Series X in April 2025 just to buy South of Midnight, but plenty of PlayStation and Switch owners might have picked it up due to buzz surrounding its launch or during awards season.

South of Midnight was nominated for several prestigious awards, and won a handful. It earned a Peabody Award and even beat Clair Obscur: Expedition 33 for a BAFTA. Clair Obscur: Expedition 33! You know, the game that gobbled up every award imaginable.

Why do those awards matter here? Because Booty himself said they were a goal for the company. “South of Midnight today won a Peabody Award, which I think is such a validation of the storytelling capability of games these days,” he told Game File in April. “And that’s right on the heels of them winning a BAFTA for new IP a couple Fridays ago. And, that is our goal, right?” Elsewhere in that conversation, Booty said Xbox was “dedicated to places where new [intellectual property] can come to life and where these stories can be told,” yet the actions of Xbox speak louder than his words.

Check out South of Midnight on Xbox Game Pass. You won’t regret it.