Hideo Kojima expressed genuine bewilderment when Sony placed his upcoming project, Physint, on a cancellation shortlist. In his view, the title represented "the biggest‑selling game I could possibly create," a statement that underscores both his confidence in the concept and the disappointment he felt at Sony's decision.
During an interview with The Washington Post, Kojima explained that the move caught him completely off‑guard. "We couldn't understand it," he said, noting that the decision came after Jim Ryan had already stepped down from his role at Sony Interactive Entertainment. "I had assumed that Sony Interactive Entertainment and I had reached a clear agreement to collaborate on this project," Kojima added, emphasizing the sense of partnership that he believed existed between his studio and the console maker. The creator described his reaction as a mixture of shock and curiosity rather than anger or sadness.
"I was just stunned," he recounted. "My immediate thought was, 'What should I do next?' It was a serious issue for the studio, and at that moment I couldn't even inform my team about what was happening." On September 10, Kojima announced that his independent studio had "unexpectedly received notice from PlayStation Studios" in mid‑June indicating that funding for Physint would be withdrawn. He stressed the precarious nature of operating as an independent developer: "When a major publisher pulls its financial support, the very existence of a studio can be jeopardized. Many independent studios that have broken away from larger publishers struggle to achieve lasting success." Kojima went on to argue that the potential collapse of his own studio would send a discouraging signal to other developers considering independence.
"If my studio were forced to shut down, it would only reinforce the notion that independent studios are too risky," he warned. "I wanted to stand up for indie developers, so I began looking for a new publishing partner." That search ultimately led Kojima Productions to a partnership with Xbox, which is also backing the studio's forthcoming horror project, OD. Kojima confirmed that the transition to Xbox did not result in any layoffs; instead, the majority of the team was reassigned to continue work on OD, while a smaller contingent remained dedicated to advancing Physint under the new partnership. According to Kojima, Sony never offered a concrete explanation for its funding cut.
However, a Bloomberg report cited sources claiming that Physint had "missed several key milestones and was projected to exceed its budget by a considerable margin, despite still being years from a launch date." The same report suggested that the commercial performance of Death Stranding and its sequel fell short of Sony's expectations, possibly influencing the decision to pull resources. Kojima Productions issued a statement distancing itself from the unverified claims, stating, "None of the allegations presented are based on official or on‑record sources, and we encourage readers to treat them with skepticism." The studio also emphasized the seriousness of the situation, acknowledging that the news could cause concern among fans and partners. "We want to assure everyone that the studio remains financially healthy and profitable," the statement read.
"Development on Physint continues under Xbox's support, and our relationship with PlayStation remains amicable." Reiterating his stance, Kojima described the ongoing relationship with Sony as constructive rather than adversarial. "Corporations behave like living organisms," he said.
"We are not in a dispute, nor are we fighting with them." In terms of the game's progress, Kojima disclosed that the narrative and core concept for Physint are fully fleshed out. The studio has begun constructing three‑dimensional models of the characters and is actively testing multiple game engines to determine the best technical foundation for the project. He also highlighted the involvement of talent already attached to the project. "The cast, as well as the artists and collaborators I've negotiated with, are all enthusiastic about moving forward," Kojawa noted.
"I cannot tell them the project is cancelled, especially after the hardships we endured with PT. It would be disheartening to inform them that the effort is being abandoned." Overall, while the shift from Sony to Xbox marks a significant change in the development pipeline, Kojima remains optimistic about Physint's future. He stresses that the game's creative vision remains intact, the team is motivated, and the new partnership provides the necessary resources to bring the ambitious title to life.
The situation underscores the volatility of large‑scale game development, the importance of flexible publishing relationships, and the resilience required to navigate unexpected corporate decisions.