Sony PlayStation dropped Hideo Kojima's Physint over budget concerns and missed deadlines: Report

PlayStation's decision to walk away from Hideo Kojima's highly anticipated action-espionage game Physint was reportedly driven by concerns over missed deadlines, rising costs and the project's long term profitability.

PlayStation drops Hideo Kojima's Physint

The move, which initially appeared to be a sudden split between PlayStation and Kojima Productions, has now taken on a clearer business dimension. According to a Bloomberg report cited by multiple outlets, Sony became increasingly concerned about the scale of investment required for Physint, with the project reportedly facing deadline delays and costs that were already heading beyond expectations.

The game, however, is far from dead. Xbox has stepped in to publish Physint, making it the second major upcoming Kojima Productions title backed by Microsoft after the horror project OD.

Budget and deadline worries

According to the report, people familiar with the project said Sony was reluctant to commit what could eventually amount to hundreds of millions of dollars to Physint, particularly as the game had reportedly already missed deadlines and was expected to become increasingly expensive.

The timing of those concerns is notable because Physint remains years away from release. Kojima has previously indicated that the project could still be five to six years from completion, meaning the development costs would have had significant room to grow.

Sony was also reportedly assessing the project's potential profitability through the lens of its previous collaborations with Kojima Productions. Bloomberg's report said the two Death Stranding games did not meet PlayStation's revenue expectations, adding another layer of caution to the company's decision over Physint.

The issue was not simply about money, however.

Questions over exclusivity

Another concern reportedly centred on Physint's future availability beyond PlayStation hardware.

Kojima Productions is an independent studio, and Sony does not own the Physint intellectual property. That meant PlayStation would potentially be investing heavily in a major project without having complete control over its long-term distribution.

The report also pointed to Sony's changing approach to PC releases. PlayStation has reportedly become less willing to release certain major single-player games on PC, while Xbox has a far more established presence across both consoles and PC.

That made Microsoft a natural fit when Kojima Productions began searching for a replacement publishing partner.

Xbox is expected to support Physint across its gaming ecosystem, and reports indicate the company plans to publish the title on both console and PC.

Kojima says cancellation came unexpectedly

The public confirmation of the split came on September 10, when PlayStation said it had made the “difficult decision” to step away from collaborating with Kojima Productions on Physint.

Hideo Kojima described the situation more directly. According to his statement, PlayStation Studios informed Kojima Productions in mid-June that it would cancel the project, prompting the studio to spend the next three months searching for a new partner.

"Determined to keep the project alive, we have spent the last three months searching tirelessly for a new partner," Kojima said in a statement cited by Game Developer.

He added that the studio eventually found in Xbox “a partner with whom we share a common vision for the future”.

Xbox CEO Asha Sharma welcomed the partnership, saying the company was honoured that Kojima had chosen Xbox to work with Kojima Productions on Physint.

For PlayStation, the decision ends its publishing involvement in one of the industry's most closely watched upcoming games. For Xbox, it represents an unexpected opportunity to strengthen ties with one of gaming's most influential creators.

And for Kojima, Physint has survived a major setback, but the project remains alive.