Kojima Productions responds to report claiming why PlayStation ditched Hideo Kojima and PHYSINT

Kojima Productions has pushed back against a Bloomberg report from earlier this month, which claimed to explain why PlayStation walked away from Hideo Kojima's upcoming action-espionage game PHYSINT. Kojima Productions has now urged fans to treat the claims "with a dose of skepticism."

Bloomberg's Jason Schreier reported on September 11 that Sony pulled out of backing the development of Hideo Kojima's next title, "PHYSINT," over concerns surrounding its budget, profitability, and exclusivity. The report cited unnamed people familiar with the project and also claimed Death Stranding and Death Stranding 2 failed to meet PlayStation's revenue expectations, while PHYSINT had missed deadlines and was on track to run well over budget. On top of that, current timelines estimate PHYSINT is still years from release.

Kojima Productions responded to those claims in an X post on September 20, saying none of them came from "any official or on-the-record source." The studio said it would not normally address "unsubstantiated speculation," but felt it had to respond because the report had raised questions about its relationship with PlayStation, the commercial performance of the Death Stranding franchise, and PHYSINT's development.

Importantly, Kojima Productions did not deny each individual claim Bloomberg made. Instead, the director stressed that the studio remains healthy and profitable, that development of PHYSINT is continuing under Xbox, and that its relationship with PlayStation remains strong.

Sony announced on September 10 that it was stepping away from PHYSINT, which was followed by Kojima revealing that PlayStation Studios had unexpectedly notified him in mid-June that it intended to cancel the project, prompting his studio to spend roughly three months searching for a new publishing partner before it finally reached an agreement with Xbox.

Frequently Asked Questions

Open a question for an answer from TweakTown's coverage of this news, or ask your own below.

Question #1

What does Kojima Productions mean by saying PHYSINT is now continuing under Xbox?

It means Kojima Productions found Xbox as the new publishing partner after Sony stepped away from PHYSINT. Kojima said the game's development is continuing under Xbox, and separate coverage notes that Xbox is set to publish the project. In other words, the game did not stop, but its backing shifted from PlayStation to Xbox.

Question #2

How would PlayStation stepping away affect PHYSINT's release timeline and budget?

Bloomberg's report said PHYSINT had already missed deadlines and was still years from release, with the project on track to run well over budget. Kojima later said PlayStation stopped funding the game in June, and his studio spent roughly three months looking for a new publishing partner before reaching an agreement with Xbox. Kojima Productions did not confirm those budget and timeline claims, and said fans should treat them with skepticism.

Question #3

Did Kojima Productions address the claim that Death Stranding and Death Stranding 2 missed PlayStation's revenue expectations?

Yes. Kojima Productions said the claims did not come from any official or on-the-record source and urged fans to treat them with skepticism. The studio did not directly deny each Bloomberg claim, but it said it remains healthy and profitable and that its relationship with PlayStation remains strong.

Question #4

Why was Sony said to have canceled PHYSINT in June after previously backing it?

Bloomberg's report said Sony pulled out because of concerns about PHYSINT's budget, profitability, and exclusivity, and it also claimed the game had missed deadlines and was heading well over budget. Kojima later said he was told in June that Sony could no longer fund development, but he was not given a reason. Kojima Productions also urged fans to treat the report's claims with skepticism.

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"We are an independent company, so no funding is behind us as a corporation. We sign contracts according to projects, and that's how we survive one by one as an indie. So I need to find a new project before the previous project ends, and that's how we stay alive. That's our background situation.

So in June, SIE said they wanted to have a Zoom call. I was so busy at that time - I had just gone to New York for a Prada event and then to LA right after. But anyway, I came back and we had this Zoom call.

They said they can no longer fund development for Physint. I was shocked and I said, "What did you say?" I couldn't quite process what they had said. I wasn't sure because I was in shock.

Anyway, I know there's a lot of news in the game industry that many studios are closing down, many titles are canceled, and I understand the situation in the industry as a whole. But I thought Physint was okay. That Physint was safe. So I was surprised. But not just surprised. We didn't understand the reason. I didn't have any anger or sadness; my first thought was, "What am I going to do with my studio?" Because we signed contracts for projects," said Kojima in a statement to IGN