After Cutting Ties With Sony and Moving Physint to Xbox, Hideo Kojima's Studio Breaks Silence on Finances
Published on · Updated on
Kojima Productions denies financial trouble rumors, defends Death Stranding sales and details Physint's future on Xbox.
Kojima Productions has broken its silence to cool the wave of speculation sweeping the industry in recent weeks. The Japanese studio publicly confirmed it is operating in the black, remains in exemplary financial health and is pushing ahead with Physint at full speed, now under Microsoft's banner.
The official statement follows the revelation that Sony Interactive Entertainment cancelled its involvement with Physint in mid-June. After the original publisher's exit, the team led by Hideo Kojima spent roughly three months negotiating behind the scenes before closing a global deal with the Xbox division to make the project viable.
Pushback against behind-the-scenes rumors
Recent reports from analysts and international outlets suggested the PlayStation contract's end had been driven by allegedly below-expected commercial performance for the Death Stranding franchise, plus sky-high costs and blown deadlines in Physint's pre-production.
In a statement posted on the social network X, the Japanese developer said none of those claims came from official or authorized sources. The text stresses that letting such narratives circulate unchecked could harm creative partners, production teams and the brand's own credibility with the global community.
What changes for Physint's development
Originally unveiled during the 2024 State of Play broadcast, Physint was conceived by Kojima as a next-generation tactical espionage game aiming to blend interactive cinema and videogames on an unprecedented scale.
With financial and infrastructure backing from the Xbox ecosystem, the studio says the schedule remains stable. Kojima reinforced his presence at the Xbox showcase at Tokyo Game Show to prove Physint and the mysterious horror game OD are progressing in parallel, keeping the company's creative portfolio diversified and autonomous.
Relationship with PlayStation and next steps
Despite the drastic publisher switch for its new action-espionage title, the developer reiterated that its institutional relationship with Sony remains strong, with no legal or commercial disputes. Both sides chose not to publicly detail the specific contract terms that led to the project's amicable termination.
Kojima Productions is now focused on delivering technical milestones alongside Microsoft, promising fresh updates once Physint's conceptual phase moves into playable stages of development.
Suggested and related articles
PlayStation: End of physical media sparks 280K-signature petition as devs warn of 'end of ownership'
PS6 and Helix: leaked $1,000+ prices spark next-gen doubt
Xbox Disc-to-Digital: Ubisoft, Square Enix and Sega Are Blocking Disc Game Conversion
Persona 4 Revival: Atlus Details Remake With 3D Inaba and Revamped Combat
God of War: Laufey arrives February 16, 2027 on PS5; details on Kratos' wife's game
