Hideo Kojima shares more details on how the deal with Sony collapsed, confirming that he received no actual reason for PHYSINT's cancellation.

Famous game developer Hideo Kojima is speaking to press to clear up misconceptions on what happened regarding Sony's separation from the PHYSINT project. The game was originally set to be published by PlayStation, however, it was abruptly cancelled, leading to Xbox securing PHYSINT instead. Kojima also today put out a statement clarifying the studio is in a profitable and healthy state.
Popular Now: PS6 could be faster than the RTX 5080, claims analysis, but 80 TFLOPS math doesn't add upNow Kojima tells The Washington Post's Gene Park that Sony gave no actual reason as to why they were backing out of the PHYSINT project. "We couldn't understand it," he said, continuing: "This is the biggest selling title I could possibly create. I didn't think PHYSINT would be on the list of being cancelled."
We also get a rare retelling of what happened behind the scenes--it's not often that game developers, especially ones that work with such high-profile teams, will speak out on these kinds of matters.
Kojima continues, saying that it was difficult to inform the team: "The staff is the most important for me," Kojima said, also saying that he didn't reduce team size during the transfer of PHYSINT from PlayStation's publishing team over to Xbox's.
It's possible that Sony's motivations for cancelling its involvement in PHYSINT were purely monetary, as the platform-holder is currently solidifying plans for its next-generation PlayStation 6 console, which given the current economic climate may feel something like trying to navigate a ship through a hurricane storm.

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Why did Sony cancel PHYSINT without giving Kojima a reason?
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Did Kojima's statement explain whether PHYSINT is still in development with Xbox?
Could Sony address the PHYSINT cancellation during its Q2 FY26 earnings call?
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Sony may not give an explanation to the press, nor Kojima, but corporate executives may answer these kinds of questions if they are posed by investors during earnings calls. Given the breadth and scale of the reports, it's possible this will come up during Sony's Q2'FY26 earnings call, but that won't happen until November 5, and it's possible this may have faded out of the public eye before then.







