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Report: Sony broke up with Kojima over budget concerns, missed deadlines, disappointing sales revenue

New reports reveal details on why Sony essentially broke up with Hideo Kojima as the auteur was apparently over budget and missed multiple deadlines.

Report: Sony broke up with Kojima over budget concerns, missed deadlines, disappointing sales revenue
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Senior Gaming Editor
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TL;DR: Bloomberg reports Sony ended its partnership with Kojima Productions after missed deadlines, budget overruns, and underwhelming Death Stranding 2 revenue. Sony balked at funding huge PHYSINT costs-a new, actor-driven AAA IP-especially given Kojima Productions' independence and potential non‑exclusivity, so Xbox will publish PHYSINT instead.
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Sony recently separated from Hideo Kojima, allowing Xbox to swoop to publish Kojima's next game. New details reveal why Sony made this decision after decades of working with the Metal Gear Solid creator.

Report: Sony broke up with Kojima over budget concerns, missed deadlines, disappointing sales revenue 4

Sony recently made the decision to separate from Hideo Kojima and terminate a partnership deal with Kojima Productions. Sony was set to publish Kojima's next game, PHYSINT, but that fell apart. Xbox took advantage of the rare opportunity and, in a tables-have-turned situation, will now publish PHYSINT instead of Sony.

Hideo Kojima is one of the most famous game developers on the planet. He merged action with an operatic storyline in Metal Gear Solid and blurred the line between movies and games with Death Stranding. So why would Sony break up with Kojima? New reports from Bloomberg's Jason Schreier give some clues, and it sounds like Sony separated from Kojima for some of the same reasons that Konami did back in 2015.

Sources tell Bloomberg that Kojima's relationship with Sony had been strained by the typical dysfunctions shared by most brilliant creatives, with missed deadlines and going over-budget being the biggest issues.

Reports also indicate that Sony was disappointed by the revenue that Death Stranding 2 sales brought in, which is interesting, because DS2 was sold for $70 whereas the first game was the more standard $60.

As far as the investment goes, Sony was apparently hesitant to spend hundreds of millions of dollars making PHYSINT when the game may not stay exclusive to the PlayStation platform. Kojima Productions is independent, and Death Stranding 1 was not only released on Xbox, but arrived on Game Pass for a time.

Following multiple releases on PC, Sony has reinvigorated exclusivity and is now distancing itself from releasing its core first-party games on the platform, instead keeping them on PlayStation in a bid to sell more consoles and bolster the brand's value.

PHYSINT was/is set to be a big-budget AAA game, complete with real-world actor portrayals through motion capture. It's also set in a brand new IP, and while video games are expensive to make by default, new IPs can tack on millions more dollars to the budget.

Another interesting point brought up by the reports is that most of Sony's old guard that had previously worked with Kojima over the years simply aren't there any more, meaning Kojima doesn't have the same kind of connective tissue with PlayStation that he had before. What this means for the future of Kojima's relationship with PlayStation remains unknown.

Frequently Asked Questions

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Question #1

What role will Xbox have in publishing PHYSINT after Sony stepped away?

Question #2

How could PHYSINT's status as a new IP affect its budget and scope?

Question #3

What did Bloomberg report about the missed deadlines and budget overruns in Kojima's Sony partnership?

Question #4

How does Kojima Productions' independence affect Sony's control over PHYSINT?

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News Source:bloomberg.com

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About the author

Senior Gaming Editor

Derek joined TweakTown in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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