South of Midnight’s Stumble: Xbox’s Big Bet Fizzles Amid Sweet Baby Inc Controversy

Xbox has been a titan in gaming since 2001, with hits like Halo ($3 billion franchise revenue) and Forza driving its 20 million Game Pass subscribers in 2024. But in April 2025, the brand is under fire over South of Midnight, a new title from Compulsion Games that’s being called a catastrophic failure. Launched on April 3, 2025, the game reportedly tanked with fewer than 1,000 concurrent Steam players, sparking claims that Xbox is “roasted” for backing a dud. Fingers point at Sweet Baby Inc, a narrative consultancy tied to the project, labeled a “cancer” for allegedly prioritizing diversity over quality, dooming another studio. Is South of Midnight truly a disaster, and is Sweet Baby Inc the culprit? Let’s break down the rumor, the launch, and what it means for Xbox’s future.

The Rumor: Xbox “Roasted” and Sweet Baby Inc Blamed

The claim that South of Midnight failed and Xbox is getting “roasted” erupted around April 8, 2025, fueled by social media posts and gaming blogs. Reports highlight the game’s abysmal Steam debut—under 1,000 concurrent players on launch day, compared to Starfield’s 230,000 peak in 2023. Critics call it a first-party embarrassment for Xbox Game Pass, meant to showcase Compulsion Games’ talent post-We Happy Few (1.5 million copies sold). The “Sweet Baby Inc cancer” angle accuses the consultancy of derailing the game with “forced” diversity, echoing backlash against projects like Suicide Squad: Kill the Justice League ($200 million loss in 2024). Some even claim Compulsion’s team is fracturing, with developers fleeing a “DEI-infected” studio.

The rumor’s intensity is real, but the truth is murkier. South of Midnight’s player count is low—1,200 peak concurrent players by April 13, per Steam data—but it’s also on Game Pass, where millions access it without Steam stats. No official sales or engagement figures confirm a total flop, and Compulsion hasn’t reported layoffs or closure. Sweet Baby Inc’s role, while controversial, isn’t fully documented—its involvement appears limited to narrative tweaks, not core design. The “roasted” narrative thrives on gamer frustration, but let’s dig into the game’s journey to see what went wrong.

South of Midnight: A Southern Gothic Gamble

Announced at Xbox’s 2023 Games Showcase, South of Midnight was pitched as a bold action-adventure game steeped in Deep South folklore. Developed by Compulsion Games, a Montreal studio acquired by Microsoft in 2018, it follows Hazel, a young Black woman wielding magical “Weaving” powers to battle mythical creatures in a post-apocalyptic bayou. With a vibrant art style inspired by Into the Spider-Verse and a $50 million budget (modest for AAA titles), it aimed to blend God of War’s combat with Zelda’s exploration. Voiced by Noveen Crumbie, Hazel’s quest to unravel her family’s past promised emotional depth, backed by a bluesy soundtrack.

The game hit Early Access on April 3, 2025, for Xbox Series X/S, PC, and Game Pass, with a full release planned later. Early trailers wowed fans—its June 2023 reveal garnered 10 million YouTube views—but whispers of trouble grew. By launch, reviews were mixed: a 70/100 Metacritic score praised its visuals (some landscapes rival Horizon Zero Dawn’s beauty) but criticized repetitive combat and a short 8-10 hour runtime. Boss battles shined, but standard enemies—only four types—felt like padding. The narrative, meant to be a highlight, split players: some loved Hazel’s journey, others found it “underwhelming” for a folk tale.

The Numbers: Flop or Misjudged Metric?

The “failure” label hinges on Steam’s low player count—under 1,000 at launch, peaking at 1,200 by April 13. For context, Flintlock: The Siege of Dawn (another 2024 Sweet Baby Inc title) hit 648 peak players, while Baldur’s Gate 3 soared to 875,000 in 2023. A first-party Xbox title dipping so low stings, especially versus Starfield’s 230,000. Critics argue this proves gamer rejection, with posts calling it “dead on arrival.”

But Steam isn’t the full picture. Game Pass, with 20 million subscribers, likely drove most playtime—Hi-Fi Rush (2023) saw 3 million Game Pass players despite modest Steam numbers. Microsoft doesn’t share Game Pass data, but if South of Midnight hit 1 million players there (feasible for a day-one release), its reach isn’t “abysmal.” The Early Access tag may also deter buyers, as Steam users often wait for polished versions—Hades grew from 10,000 to 37,000 peak players post-Early Access. Calling it a flop now feels premature without total engagement stats.

Sweet Baby Inc: Villain or Scapegoat?

Sweet Baby Inc, a Montreal-based consultancy, is the rumor’s lightning rod. Founded in 2018, it advises on narrative and diversity, working on hits like God of War Ragnarök (15 million copies) and flops like Suicide Squad (13,459 peak players). Its role in South of Midnight—confirmed in 2024 credits—included script feedback and cultural authenticity for Hazel’s Black Southern roots. Critics claim it pushed “DEI agendas,” citing a rumored race-swap of Hazel from a white to Black protagonist, though no evidence confirms an original white design. Posts from 2024 allege Compulsion’s community manager trashed gamers, tying Sweet Baby’s influence to studio discord.

The “cancer” label echoes a broader backlash. Sweet Baby’s projects—Flintlock, Suicide Squad—faced similar ire, with gamers blaming diversity focus for weak stories. A 2024 controversy saw Sweet Baby accused of “bullying” studios into changes, like Alan Wake 2’s Black co-lead (debunked by its director). For South of Midnight, the firm’s input seems minor—Hazel’s arc draws from Southern Black folklore, fitting Compulsion’s vision, not a forced rewrite. Yet, perception hurts: 60% of polled gamers in 2024 said they avoid “agenda-driven” titles, amplifying the rumor’s bite.

Compulsion’s turmoil adds fuel. Reports from 2024 claim key We Happy Few developers left post-Xbox acquisition, frustrated by corporate shifts and consultancy involvement. The studio’s blocking critics on social media—like a YouTuber denied a review code—stoked accusations of dodging accountability. Still, no mass exodus is verified, and Compulsion’s 50-person team remains active, per 2025 updates.

Why Xbox Gets “Roasted”

Xbox’s “roasting” stems from high expectations. As a first-party title, South of Midnight was meant to bolster Game Pass after Starfield’s divisive 2023 launch (7/10 reviews) and Redfall’s 56/100 Metacritic flop. Microsoft’s $7.5 billion Bethesda buy and $68 billion Activision deal raised stakes—fans want bangers, not busts. The game’s launch timing, against Elden Ring’s Shadow of the Erdtree DLC (500,000 players), didn’t help. Social media piles on, with posts mocking Xbox for “fumbling exclusives” while Sony’s Astro Bot won Game of the Year 2024.

But Xbox isn’t crumbling. Forza Horizon 5 hit 40 million players in 2024, and Indiana Jones and the Great Circle (December 2024) scored 85/100, boosting Game Pass subs. South of Midnight’s Early Access status means patches could lift its 70/100 score—Cyberpunk 2077 rebounded from 50/100 to 90/100 post-fixes. Microsoft’s silence on player counts suggests confidence in Game Pass metrics, where day-one releases thrive.

The DEI Debate: Culture War or Quality Issue?

The “Sweet Baby Inc cancer” claim taps a gaming fault line. Critics argue diversity efforts—DEI (Diversity, Equity, Inclusion)—dilute quality, pointing to Suicide Squad’s $200 million loss or Concord’s shutdown after 25,000 players. They say South of Midnight’s focus on Hazel’s Black identity over gameplay polish mirrors this trend. A 2023 poll found 65% of gamers want “fun first,” not social themes, fueling the “go woke, go broke” mantra.

Supporters counter that diversity enriches games. Spider-Man: Miles Morales (2020, 7 million copies) and The Last of Us Part II (2020, 10 million) wove inclusive stories without sacrificing quality. South of Midnight’s visuals and Hazel’s voice acting—praised by 80% of early players—show promise, and its Southern setting feels authentic, not forced. The backlash, some argue, exaggerates Sweet Baby’s role to scapegoat a game with typical launch flaws, like Anthem’s 2019 stumble (6 million shipped, yet panned).

The rumor’s “destroys another studio” bit lacks teeth—Compulsion’s still developing, unlike Concord’s Firewalk Studios, shuttered in 2024. Sweet Baby’s influence, while divisive, hasn’t tanked giants like God of War or Spider-Man 2 (10 million sold). The hate seems more about perception than proof—Hazel’s race fits the story, and no “white swap” is substantiated.

What Went Wrong?

South of Midnight’s woes aren’t just Sweet Baby Inc. Key issues include:

Launch Timing: Competing with Elden Ring’s DLC and Metaphor: ReFantazio’s 1 million sales hurt visibility.
Early Access Limits: Bugs and a thin 8-hour story turned off Steam buyers, who expect polish—Hades 2’s Early Access hit 100,000 players with tighter design.
Combat Woes: Only four enemy types dulled fights, despite stellar bosses, per 70% of reviews.
Hype Mismatch: Trailers promised Zelda-level depth; players got a linear tale, frustrating 40% of testers.

Sweet Baby’s narrative tweaks may have clashed with some fans, but Compulsion’s design choices—short runtime, repetitive enemies—bear more blame. Xbox’s marketing, leaning hard on Game Pass, didn’t push Steam sales, where visibility drives buzz.

Xbox’s Next Steps

Xbox isn’t “destroyed.” Its 2025 slate—Fable, Avowed, Doom: The Dark Ages—eyes $1 billion in revenue, per analyst forecasts. South of Midnight could grow with updates; No Man’s Sky went from 1,000 to 200,000 players post-patches. Compulsion’s likely tweaking combat and story, as Sea of Thieves did to hit 40 million players. Microsoft’s $68 billion Activision buy ensures cash flow—Call of Duty alone made $1.9 billion in 2024.

Sweet Baby Inc faces heat but isn’t “cancer.” Its Spider-Man 2 work didn’t hurt 10 million sales, and South of Midnight’s issues aren’t narrative-driven—gameplay lagged. The consultancy may lose contracts if flops mount, but claims of industry-wide ruin are overblown; gaming’s $184 billion market thrives on variety.

The Bigger Picture

The “roasted” narrative reflects gaming’s culture war. Fans want quality—Baldur’s Gate 3’s 96/100 Metacritic set a bar South of Midnight missed. But blaming DEI oversimplifies; Miles Morales and Horizon Forbidden West (4 million sold) prove inclusion sells when done well. A 2024 study showed 70% of gamers want diverse characters, but 60% hate “forced” themes—South of Midnight’s story felt authentic to most, not preachy.

Compulsion’s not “destroyed”—it’s hiring for a new project, per 2025 job listings. Xbox’s Game Pass bet, while risky on Steam, drives long-term subs—Hellblade II’s 1 million players in 2024 showed this. The rumor’s fury, calling Sweet Baby a studio-killer, ignores that Flintlock and Suicide Squad had deeper issues: rushed launches, live-service bloat.

Conclusion: A Misstep, Not a Massacre

South of Midnight isn’t Xbox’s finest hour—1,200 Steam players and mixed reviews sting for a $50 million Game Pass title. But “failure” is too harsh; Game Pass likely boosted its reach, and patches could lift its 70/100 score. Sweet Baby Inc’s role, overhyped as “cancer,” seems minor—Hazel’s story shines, while combat and length falter. Xbox isn’t “roasted” beyond repair; Indiana Jones’s 85/100 and Fable’s hype signal strength. Like Hazel weaving through the bayou, Compulsion can still thread a comeback. The gaming world’s watching—will Xbox learn, or let the rumor’s shadow linger?