Hideo Kojima detailed how Sony Interactive Entertainment ended funding for PHYSINT in mid-June, a decision communicated during a Zoom call. The action and espionage project was not canceled and, after about three months of negotiations, started being published by Xbox.
According to Kojima, Sony did not present a specific justification during the conversation. The decision put the continuity of Kojima Productions at the center of concerns, since the independent studio depends on publishing deals to finance its projects.
The company employs nearly 200 people, including professionals hired for PHYSINT. Kojima stated that there were no layoffs: part of the team was temporarily transferred to OD, while a smaller group continued working on the new game.
Xbox expands partnership with Kojima Productions
The already existing relationship with Microsoft helped in the negotiations. Xbox, which also publishes OD, was confirmed on September 10 as the new partner for PHYSINT.
The agreement also expands collaboration between the companies for film and television projects. So far, there is no release date or confirmation of platform exclusivity for PHYSINT.
The publisher change also generated reports about the reasons for Sony's departure. Bloomberg stated, based on sources familiar with the project, that there were concerns involving budget, delays, profitability and exclusivity.
The Kojima Productions challenged the way this information circulated and asked that the reports be treated with “a dose of skepticism”. The studio stated it was in a “healthy and profitable” position, confirmed the continuation of PHYSINT with Xbox and said it maintains a strong relationship with PlayStation.
Sony only stated that it decided to leave the project after a careful analysis, without publicly disclosing a specific reason. Kojima also dismissed the idea of a personal rift and stated that his relationship with the company continues.
