Hideo Kojima recently revealed that SIE suddenly notified him in June of this year that it would no longer be able to fund his new action espionage title, "Physint". The project was subsequently taken over by Xbox for publishing. Kojima Productions emphasized that the company is currently operating steadily and profitably, with game development still ongoing.
"Physint" was announced at the State of Play in January 2024, with the goal of breaking down the boundaries between film and video games. On September 10, PlayStation announced the termination of the project partnership, and Xbox subsequently announced it would take over publishing. Hideo Kojima later confirmed during the Xbox Tokyo Game Show 2026 livestream that the protagonist would be played by Swedish actor Bill Skarsgård.
In an interview, Kojima said he received the notification to stop funding without warning during a video conference with SIE, leaving his mind blank. He explained that independent studios rely on project contracts to operate and must secure their next project before the previous one ends.
The studio currently has around 200 employees and only two projects on hand: OD and Physint. It recently expanded the team for the latter, beginning actor scanning and modeling as well as collaborations with external artists. Kojima stated that losing the contract could lead to layoffs, or even bankruptcy due to tightened bank credit and cash flow difficulties.
To continue development, Kojima began contacting various parties, presenting his vision of combining games, film, television, animation, and music. His existing partner, Xbox, responded positively and agreed to take over after negotiations. Kojima stated that besides funding, Xbox can also provide technical support, and the other party values directions such as film and animation as well as the creation of new IPs.
Kojima emphasized that development of Physint has never stopped; it is still in the early planning and experimental stages. Some members were transferred to the OD team, but the overall adjustment was minor and did not cause significant delays. The choice of game engine has not yet been decided. He also stated that he has no disputes or conflicts with Sony; they have simply collaborated for 30 years, and he wished to have been informed of the changes earlier rather than just receiving a final notice.
Regarding the reasons for the termination of cooperation, Bloomberg previously cited insiders saying that PlayStation considered factors such as budget overruns, insufficient potential profitability, and the inability to ensure console exclusivity. Kojima Productions later issued a statement on X, stating that these claims were not based on official or verifiable reliable information, emphasizing that Physint is progressing smoothly in close collaboration with Xbox, and that the studio's relationship with PlayStation remains solid.