Xbox to Publish Hideo Kojima’s Physint After PlayStation Cancels Project

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PlayStation Cancels PHYSINT and Shifts the Industry Landscape

The transition came to light on September 10, 2026, when PlayStation Studios posted a statement on X confirming it had stepped away from its partnership with Kojima Productions after three decades of collaboration, according to Digital Trends. Barely minutes later, Xbox confirmed that it would step in to publish the game, widening its ties with the developer.

Game creator Hideo Kojima detailed the timeline of the sudden shift on social media, explaining that his studio received notice of the cancellation in the middle of June 2026. As confirmed earlier through our official channels, in mid-June of this year, we unexpectedly received notice from PlayStation Studios that they would cancel the PHYSINT project, Kojima stated on X, as reported by Digital Trends.

Faced with the unexpected cancellation, Kojima Productions spent three months navigating discussions to find a publisher that shared its creative goals. Xbox CEO Asha Sharma expressed enthusiasm about the deal, stating that it was an honor that Kojima chose Xbox, according to Digital Trends. Kojima confirmed that the expanded publishing agreement covers both OD and the upcoming action-espionage game PHYSINT, while also stretching beyond interactive software into film and television projects.

Sony Drops Physical Discs as Industry Shifts Toward Digital

The split arrives as Sony faces ongoing consumer backlash over its hardware and media distribution strategies. According to TechRadar, Sony announced plans to discontinue the production of physical PlayStation game discs by January 2028, with the historic manufacturing facility already being converted into a micro-optics lab as operations wind down.

Kojima addressed the industry-wide pivot toward digital ecosystems during an appearance at the Il Cinema in Piazza festival in Rome, Italy, where TechRadar reported on his remarks. I’m very sad about it, because I grew up with physical media, Kojima told the festival audience, noting that he actively collects Blu-ray discs and DVDs. He warned that moving toward fully digital streaming architectures creates long-term ownership risks for consumers.

If games move towards streaming in the future, that will also disappear, Kojima said, according to TechRadar’s translation of his remarks. It’s like streaming subscriptions for movies. Like Netflix or Amazon, there’s a server somewhere, and you only have the right to turn on the tap. When you turn it on, the data on the server comes out. He added that users risk losing access to their favorite media if a distributor decides to halt distribution or alter subscription terms.

What the Shift Means for Kojima Productions

While PlayStation Studios maintained in its public statements that its relationship with Kojima remains strong despite the cancellation, the move hands a major franchise directly to a primary competitor. Digital Trends noted that Sony’s decision to walk away from PHYSINT represents a significant loss of a high-profile exclusive, particularly as fans and industry observers scrutinize the platform holder’s long-term digital transition.

For Kojima Productions, the partnership with Xbox provides a stable home for PHYSINT as development continues. With Xbox securing publishing rights for both OD and the action-espionage spiritual successor to Metal Gear Solid, the studio’s immediate pipeline is now aligned with Microsoft’s gaming ecosystem rather than PlayStation’s hardware division.