PlayStation parent company Sony reportedly pulled out of prominent video game designer Hideo Kojima’s PHYSINT project because of internal profitability and financial concerns, a new report from Bloomberg’s Jason Schreier alleges.
Gaming journalist Schreier names the commercial performance of Kojima’s Death Stranding franchise as a major catalyst in PlayStation’s decision. Those familiar with the project also cite “missed deadlines” and the game being “well over budget despite being years away from release” as contributing factors.
Death Stranding release strategies also played a part in the decision-making process; PlayStation was reportedly apprehensive about spending hundreds of millions of dollars on another non-PlayStation exclusive title.
Kojima confirms PlayStation cancellation in social media post
Kojima confirmed PlayStation Studios canceled PHYSINT in a September 9 post on X (formerly Twitter). “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 continued: “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.
“In the course of seeking advice and pursuing negotiations with people across many fields, we found in XBOX a partner with whom we share a common vision for the future, and we have decided to team up with them once again. Please rest assured that development of PHYSINT, our genre-defining action-espionage title, is ongoing and will continue moving forward.”
At the time of writing, Kojima’s social media post has been viewed nearly 30 million times.
XBOX’s verified X account replied the following day: “It’s an honor to build the future together.” The brand’s succinct response has around 1.5 million views and 137,000 likes.
Two years after the first tease, fans still know next to nothing about PHYSINT. The upcoming action-stealth game, which the creator himself has flaunted as a quasi-return to Kojima’s Metal Gear roots, was first announced during Sony’s January 2024 State of Play broadcast and will contrast with the creator’s recent, more cerebral releases like Death Stranding.
Kojima’s new XBOX deal reportedly includes film and TV rights for PHYSINT and the studio’s upcoming horror title, OD. The latter, revealed in 2023 at The Game Awards, is a collaboration with comedian and award-winning storyteller Jordan Peele (Get Out; NOPE).
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