In a nutshell
- Hideo Kojima reveals the exact moment PlayStation told him it would stop funding PHYSINT.
- The decision left Kojima “mind blank,” fearing layoffs and even studio collapse.
- Kojima approached multiple partners before Xbox stepped in with full support for a multimedia IP.
Hideo Kojima’s recent split with Sony over Physint had everyone shocked, especially after Kojima revealed that he would be partnering with XBOX instead.
Now, in an interview with IGN, Kojima recounts details of what really happened the moment Sony told him it would no longer fund the project.
The Zoom Call That Changed Everything
In June 2026, Kojima received a request from Sony Interactive Entertainment for a Zoom meeting. At the time, he was juggling work on Xbox’s OD and PlayStation’s PHYSINT, with no reason to expect bad news. But during the call, Sony told him they could no longer fund the development of PHYSINT. Kojima recalls asking, “What did you just say?” because he was unable to process the message.
He describes the shock as total. He immediately feared layoffs for the entire PHYSINT team and worried that Kojima Productions itself might collapse. He thought about the bank loans taken to expand the studio and the actors who had already completed scans for the game. The moment reminded him of the infamous P.T. cancellation, and he refused to let history repeat itself.
Kojima’s Immediate Response: Protect the Team
Despite the emotional blow, Kojima’s first priority was protecting his staff. Kojima Productions employs around 200 people, many of whom joined from major companies specifically to work with him. He kept the news secret at first, telling only senior leaders while he searched for a path forward. He even returned to his desk after the meeting and continued writing PHYSINT concepts, determined not to let the project die.
“But above all, the staff should be the top priority. We have about 200 staff members, and thanks to ‘PHYSINT,’ we’ve expanded our scale. Of course, everyone is excellent. Some of them have even come to my studio from major companies. I have advised that this might not be a very good idea…… Anyway, I needed to protect these important staff members. We had started scanning actors for ‘PHYSINT’ and were also discussing artists who could collaborate. It’s hard to say that the game was canceled for people like that. 『P.T.』 I didn’t want to do the same thing as before. Of course, I didn’t want to make them uneasy.”
Rethinking the Strategy: Beyond Games
Kojima realized that simply pitching PHYSINT as a game wasn’t enough. Instead, he reframed it as a full multimedia IP and a project that would span a game, film, drama, anime, comics, and music. He began approaching partners not just in gaming, but also in film studios and streaming companies, and the response was overwhelmingly positive.
I thought simply bringing in a game title proposal and saying, ‘Could you please fund this?’ was a very outdated approach…… Instead, he said, “I’m creating this new IP. I want to envision movies, dramas, anime, TV, comics, music—everything in mind.” We believed that the path forward was to say, ‘Let’s create a new IP that includes all of these together.’ When I was thinking about who to bring the project to, I was considering not only the gaming industry but also the film industry, movie studios, and even streaming companies. Because, after all, we’re all in the digital world, and I believe these industries are merging with gaming in some form.
Why Xbox Became the New Home
Kojima eventually approached Xbox, already collaborating with them on OD, and presented the full PHYSINT IP proposal. Xbox’s reaction was immediate, calling the proposal incredible and unlike anything they had seen before. Kojima highlights several reasons the partnership made sense: strong technical support, an existing relationship through OD, alignment on multimedia IP expansion, and access to cutting‑edge R&D labs that he compared to having many Docs from Back to the Future. Negotiations continued smoothly, and Xbox officially took over as publisher.
So we approached XBOX, and their response was truly outstanding. We can support us technically, and since we were already working with them on ‘OD’, we had an original connection. When I presented them with a proper proposal for the ‘PHYSINT’ project, their initial reaction was, ‘This proposal is wonderful. I’ve never seen a proposal like this before!’ That was the plan. And so, our collaboration with XBOX began.
Inside the Studio: No One Quit
Kojima feared staff resignations, but none left. Even after temporarily shifting some PHYSINT members to OD, morale remained surprisingly high. When he visited the team the following week, they were enthusiastically preparing pitch materials for the new partnership.
And the following week, I was very worried. I was worried that the staff might quit. However, I had told them to prepare materials for the proposal for the ‘PHYSINT’ project. When I went to work the following week, I was very worried that my motivation might be low, and when I checked on the team, they were happily preparing materials for project proposals and were working with great enjoyment. So I thought, “There really are tough people in our place.” That made me truly happy and surprised.
Development Status
Kojima confirms that PHYSINT development never fully stopped. Core concept work continues daily, actor scanning and casting are ongoing, and enemy AI and new gameplay systems remain in experimental phases. The game engine has not yet been finalized, and while a small team remains active, others are supporting OD. He emphasizes that PHYSINT is not yet in full production, but the project is alive and progressing.
Will PHYSINT Release on PlayStation?
Kojima says he doesn’t know. Xbox’s recent strategy includes multi‑platform releases, but he stresses that platform decisions will be announced later by Xbox, not him.
No Explanation From Sony
Kojima confirms Sony has never provided a reason for ending support, not during the call, and not afterward. Despite this, he insists he holds no resentment, citing his 30‑year history with Sony and his personal admiration for the company.
No, not at all. Since then, I haven’t heard from them even once. But I’m not competing with Sony. Nor are they in conflict. What I want to say is, we’ve been together for 30 years and have built this relationship. So, if that was the conclusion, I probably wish I had heard a little earlier. But at that meeting in June, they only gave us the final notice.
As I mentioned earlier, my mind went blank, so I didn’t ask too many questions. More than that, I was thinking, “What should I do with my own company?” At that time, that was what was in my mind. I’ve always been a huge fan of Sony. I’ve always used a Walkman, and all my cameras are made by Sony. So, I have absolutely no bad feelings toward Sony.
Kojima’s Vision: A Game and a Film
Kojima says PHYSINT must be completed, and he intends to produce a live‑action film alongside the game, using shared digital assets to shorten the usual game‑to‑movie timeline. He sees PHYSINT as the culmination of both his studio’s 10th anniversary and his own 40‑year career.
Kojima Productions’ Official Statement
The studio reiterates that it remains healthy and profitable, that PHYSINT development with Xbox is progressing smoothly, that its relationship with PlayStation is still strong, and that recent online speculation is not based on official or factual sources.
