Compulsion Games announced its new game, South of Midnight, during the Xbox Games Showcase. The third-person action-adventure game takes place in the American South, with a striking clay-like art-style.

The trailer was primarily focused on story, with a young woman named Hazel seeking assistance from a large skeleton-like man, playing a guitar in the swamp. Hazel, the main character in South of Midnight, is looking for a large magical monster, which begins to arise out of the swamp, as she prepares magic herself. The magic she uses is called Weaving, which functions more like magical sewing than classic video game spells.

In an interview with Xbox Wire, director David Sears described the setting as focusing on the rural aspects of the American South. While the game will take place in a magical version of the modern world, the areas explored in South of Midnight won't be modern, metropolitan cities. The game was created focusing on both aspects of magical realism and gothic design, aiming to create an American South that feels both authentic and magical.

No release date was given, but South of Midnight will release on Xbox Series X|S and PC. It will also be included as part of Xbox Game Pass on launch.