Hideo Kojima Explains Sony Split and Physint Move to Xbox
- According to an interview with IGN Japan’s Daniel Robson, Kojima was juggling two major projects at the time: the Xbox title OD and the PlayStation-backed Physint, a spiritual...
- I was shocked and I said, 'What did you say?' I couldn’t quite process what they had said.
- Kojima kept the cancellation news from most of his staff initially, fearing the studio's financial survival.
Hideo Kojima revealed in an exclusive interview that Sony abruptly ended its funding for the game Physint during a June Zoom call, leaving the independent developer momentarily worried that Kojima Productions might collapse before Xbox agreed to step in as a new publishing partner.
According to an interview with IGN Japan’s Daniel Robson, Kojima was juggling two major projects at the time: the Xbox title OD and the PlayStation-backed Physint, a spiritual successor to the Metal Gear Solid series. Kojima stated that Sony representatives informed him they could no longer fund development for Physint during the mid-year meeting. The unexpected decision caught the veteran developer off guard because he believed the project was secure.
“They said they can no longer fund development for Physint. I was shocked and I said, ‘What did you say?’ I couldn’t quite process what they had said. I wasn’t sure because I was in shock,” Kojima told IGN. He added that Sony gave no reason for stepping away from the project and had not contacted him again by the time of the interview. Bloomberg separately reported that Sony dropped the game due to missed deadlines, budget concerns, and Death Stranding’s commercial performance, though neither Sony nor Kojima confirmed those specific reasons during the interview.
Financial Pressures and Initial Secrecy at Kojima Productions
Kojima kept the cancellation news from most of his staff initially, fearing the studio’s financial survival. Operating as an independent company, Kojima Productions signs contracts on a project-by-project basis, staffing up or down depending on active agreements. At the time, the studio employed about 200 people across OD and Physint.
“If we lose one contract, I thought I might have to cut all the people working on Physint, right? Or our studio could end up collapsing because we’ll run out of cashflow,” Kojima explained to IGN. He also noted concerns regarding bank loans taken out to expand the studio after the launch of Death Stranding, explaining that a canceled project could jeopardize those financial arrangements.
Xbox Steps In to Rescue Physint
Despite the setback with Sony, Kojima quickly pivoted and secured a new partnership with Microsoft. According to reporting from IGN, Kojima approached Xbox boss Asha Sharma, and Microsoft quickly agreed to take over publishing duties for Physint. The rescue preserved the project, preventing it from being permanently abandoned.
Kojima Productions subsequently confirmed in an official announcement that Bill Skarsgård will serve as the game’s lead actor. Development on Physint continues with a smaller team while other staff members transition to work on OD. Kojima stated that Xbox offered the necessary technical, marketing, and playtest support to expand the project into a wider intellectual property spanning films, television, anime, music, and merchandise.
Uncertainty Surrounding PlayStation Release
Although Physint originated as a high-profile PlayStation exclusive, its future platform availability remains unconfirmed. Kojima noted that the final decision regarding whether the game will launch on PlayStation rests entirely with Xbox and will be announced at a later date, according to the sources.
Following the initial reports regarding the split, Kojima Productions issued a formal statement to Polygon and IGN emphasizing the studio’s stability.
Our studio is in a healthy, profitable state, development for Physint continues to move forward with Xbox, and our relationship with PlayStation remains strong.
Kojima Productions