Hideo Kojima says Sony ended funding for PHYSINT during a June Zoom call, leaving him briefly worried that Kojima Productions could collapse before Xbox agreed to take over the partnership. The Hideo Kojima Physint interview also makes clear that the game itself was never abandoned.

Hideo Kojima Physint interview: Sony’s decision
Kojima told IGN that Sony gave no reason for ending its funding and had not contacted him again by the time of the interview. He said the news was especially difficult because Kojima Productions is an independent studio that staffs projects according to its contracts.
The studio had about 200 people and two active projects, PHYSINT and OD. Kojima said he initially worried about cutting the PHYSINT team, losing staff and running into trouble with the bank loans that helped the studio expand after Death Stranding. The Washington Post separately reported that Sony delivered the news in June, with studio president Shinji Hirano describing how quickly Kojima returned to work afterwards.
Kojima kept the news from most of the studio while he looked for a new partner. He said he began revising the PHYSINT concept almost immediately and pitched it as a wider intellectual property that could extend beyond games into films, television, anime, music and merchandise.
Why Xbox picked up PHYSINT
Kojima said Xbox offered the technical, marketing and playtest support the project needed, as well as a broader view of the property. He had already been working with Microsoft on OD, giving the two sides an existing relationship. Xbox later confirmed it would publish PHYSINT, while Kojima Productions’ official announcement named Bill Skarsgård as the game’s lead.
The project was not cancelled, but its team was reduced while some staff moved to OD. Kojima said development continues with a small group working on the concept, story, casting, scans and technology experiments. The engine has not been decided.
Kojima also could not confirm whether PHYSINT will release on PlayStation. He said that decision is up to Xbox and will be announced later. That leaves the project’s platform plans open, despite its origins as a PlayStation-backed game.
The interview adds detail to Bloomberg’s earlier report on Sony dropping PHYSINT over budget and schedule concerns, but Kojima said Sony did not give him a reason. Our earlier report on Xbox taking over PHYSINT covers the partnership announcement, while the PHYSINT cast update details the project’s lead actor. Xbox’s publishing partnership was announced in September, and Kojima Productions has since confirmed the game’s lead actor. Read the full Hideo Kojima Physint interview at IGN, alongside The Washington Post’s account of the split.
Why did Sony stop funding PHYSINT?
Hideo Kojima said Sony did not give him a reason during the June call and had not contacted him again by the time of his interview with IGN. Earlier reporting cited concerns about budget, schedules and Death Stranding’s commercial performance, but those points were not confirmed by Sony or Kojima in the interview.
Will PHYSINT still launch on PlayStation?
Kojima said he does not know. Xbox will publish the game, but he said the final platform plan is a decision for Xbox and will be announced later.
Is PHYSINT cancelled?
No. Development continues with a smaller team while Kojima Productions works on the concept, casting and technology experiments.

















