In a nutshell
- PlayStation dropped Hideo Kojima’s Physint over budget and exclusivity concerns.
- Kojima Productions found a new home with Xbox, which will also collaborate on film and TV projects.
- Sony faces wider struggles, including hardware shortages, live‑service flops, and stricter production milestones.
Just yesterday, Sony PlayStation made a bombshell announcement, saying it has officially pulled funding for Hideo Kojima’s next project, Physint. No reasons were given, but a report from Bloomberg’s Jason Schreier has now shed light on the matter.
Why PlayStation Walked Away
According to the report, Sony cited concerns over budget, profitability, and exclusivity. PlayStation executives were reluctant to invest hundreds of millions into another project that wouldn’t remain permanently exclusive. Both Death Stranding titles were timed exclusives before eventually launching on PC and other platforms.
This decision follows underwhelming revenue from Death Stranding and its sequel, which was a “major factor” behind the decision. Other concerns were missed deadlines and ballooning costs for Kojima’s new title, despite being “years away from release.”
Additionally, Sony’s internal struggles also played a role:
- Hardware shortages and rising prices due to AI‑driven memory crunch.
- Failed live‑service experiments, including the flop of Concord.
- Stricter production milestones leading to multiple cancellations.
Kojima’s Statement
Kojima revealed on social media that his studio received “unexpected notice” of PlayStation’s withdrawal earlier this summer.
“Physint is an important project both to me personally and to Kojima Productions. Determined to keep the project alive, we have spent the last three months searching tirelessly for a new partner.”
Xbox Steps In
Xbox CEO Asha Sharma called the partnership a “bet on Kojima‑san,” highlighting confidence in Kojima Productions’ ability to deliver groundbreaking AAA IP.
The deal includes:
- Publishing Physint on Xbox and PC.
- Expanding into film and television adaptations.
- Collaboration on Kojima’s experimental horror project OD.
Kojima Productions confirmed that Physint will now be published by Microsoft’s Xbox, which is a major shift in the legendary creator’s long‑standing relationship with PlayStation. Physint is planned for an Xbox and PC release.
