The PHYSINT Xbox partnership followed PlayStation’s decision to drop the project, but Bloomberg’s reporting adds the reasons behind the split: budget pressure, missed deadlines, profitability concerns and the question of exclusivity.

Why PlayStation dropped PHYSINT
According to Bloomberg’s report, PlayStation stepped away from PHYSINT because the project was facing budget and production concerns. People familiar with the game told Bloomberg that it had missed deadlines and was on track to go well over budget despite being years from release.
The same sources said PlayStation was concerned about the game’s potential profitability and whether it would remain exclusive to its hardware. Kojima Productions’ previous two games, Death Stranding and Death Stranding 2: On the Beach, did not meet PlayStation’s revenue expectations, Bloomberg reported. Both were timed PlayStation exclusives rather than permanent ones.
Further reporting from VGC also links the decision to the production and commercial concerns described in Bloomberg’s report. The report attributes the claims to people familiar with the project, rather than to a named PlayStation executive.
PHYSINT Xbox partnership starts after PlayStation exit
Hideo Kojima said PlayStation Studios told KOJIMA PRODUCTIONS in mid-June that it would cancel the project. He said the studio then spent three months looking for a new partner before agreeing to work with Xbox again.
Microsoft confirmed the partnership, while Kojima Productions said the agreement expands its relationship with Xbox beyond OD. Xbox and the studio also plan to collaborate across film and television.
Xbox has not announced a release date for PHYSINT. Its final platform list and whether a PlayStation version will exist are also unconfirmed. Bloomberg’s report says Xbox plans to publish the game on Xbox and PC, but neither the game’s launch window nor a full platform announcement has been provided.
The move gives Xbox two Kojima Productions projects: PHYSINT and OD. For PlayStation, the change leaves a game it once presented as a major collaboration in the hands of a competing platform holder.
Read more: Xbox will publish Hideo Kojima’s PHYSINT after PlayStation exit
Read more: Kojima’s OD has a secret system to help players who get too scared
Why did PlayStation drop PHYSINT?
Bloomberg reports that PlayStation had concerns about PHYSINT’s budget, profitability, missed deadlines and whether the game would remain exclusive to its hardware.
Who is publishing PHYSINT now?
Xbox is now the project’s partner and publisher after Kojima Productions spent three months looking for a new partner, according to Hideo Kojima.
Will PHYSINT be released on PlayStation?
A PlayStation version has not been confirmed. Xbox and Kojima Productions have not announced the full platform list or a release date.

















