Hideo Kojima expressed genuine bewilderment when he learned that Sony had placed his upcoming project, Physint, on a list of titles slated for cancellation. In his view, the game represented "the biggest‑selling title I could possibly create," a statement that underscores his confidence in its commercial potential.
During an interview with The Washington Post, Kojima explained that he could not comprehend Sony's decision. "We couldn't understand it," he said.
He recalled that Jim Ryan, the former head of Sony Interactive Entertainment, had already stepped down, yet Kojima believed the partnership on Physint was a joint venture that both parties had mutually agreed to pursue. "I thought this was a project that Sony Interactive Entertainment and I had agreed to team up on and make together," he added. Kojima described his reaction as a mixture of shock and curiosity rather than anger or sadness.
"I was just shocked and surprised. I didn't have any anger or sadness. I was just thinking, 'What should I do?'" he told the reporter. He emphasized that the situation presented a serious challenge for his studio, and at the time he was unable to disclose details to his employees.
"It's a big problem for us and I couldn't tell staff at the time," he admitted. On September 10, Kojima publicly announced that his independent studio had "unexpectedly received notice from PlayStation Studios" in mid‑June that funding for Physint would be withdrawn.
He highlighted the precarious nature of operating an independent studio, noting that the loss of financial backing from a major publisher could threaten the very existence of his company. "We're an independent studio.
That means if they can't fund us, our studio could collapse," he warned. He also pointed out that many developers who have left larger publishers to start their own studios face significant hurdles in achieving sustained success. Kojima argued that if his studio were forced to shut down, it would send a discouraging message to other independent developers.
"If my studio closes as well, that's all the more reason for people to not go to independent studios anymore. I wanted to stand firm for indies, so I needed to find a new partner," he said. This conviction ultimately led him to seek a new alliance with Microsoft’s Xbox division, which had already been collaborating with Kojima Productions on the upcoming horror title OD.
The partnership with Xbox allowed Kojima to keep the core team intact, avoiding layoffs, and to reassign staff to continue work on OD while a smaller group persisted with Physint's development. According to Kojima, Sony did not supply a concrete justification for pulling its financial support.
However, a Bloomberg report cited sources claiming that Physint had missed key milestones and was projected to exceed its budget significantly, despite being several years away from a final release. Additional speculation suggested that the commercial performance of Death Stranding and its sequel fell short of Sony’s expectations, potentially influencing the decision.
Kojima Productions issued a statement distancing itself from the unverified claims. "None of the claims written came from any official or on‑the‑record source and as such we encourage you to take them with a dose of scepticism," the studio wrote. It emphasized that the situation was serious but reassured stakeholders that the studio remained financially healthy and profitable. "Make no mistake, this was a serious situation for the studio with a range of potentially significant implications.
While we recognise that the article may have caused alarm, we want to reassure you all, for the record: that the studio is in a healthy, profitable state, development for Physint continues to move forward with Xbox, and our relationship with PlayStation remains strong," the statement continued. Kojama reiterated that, despite the funding cut, his relationship with Sony had not deteriorated into a dispute. "Corporations are like living things," he observed. "We're not in a dispute.
We're not fighting with them." This diplomatic tone suggests an intention to keep doors open for future collaborations, even as the current project shifts to a new platform. Regarding the creative status of Physint, Kojima disclosed that the narrative and core game concept were fully fleshed out.
The studio had already begun constructing three‑dimensional models of characters and was actively testing various game engines to determine the best technical foundation. "The cast I already talked to and negotiated with, other artists and collaborators who were all happy to do it," he said. He expressed a personal reluctance to inform the talent involved that the project might be cancelled, recalling the emotional fallout from the earlier PT (Playable Teaser) incident, which had generated significant hype before being pulled.
"I can't tell them this is cancelled, especially after what we went through with PT. I didn't want to go back and do it again and say to the actors this is cancelled," Kojima explained. In summary, Hideo Kojima’s reaction to Sony’s unexpected withdrawal of funding for Physint was marked by confusion, strategic recalibration, and a steadfast commitment to preserving his studio’s independence.
By aligning with Xbox, he secured a new source of support that allowed development to proceed without major staff reductions. While the exact reasons behind Sony’s decision remain opaque, industry speculation points to budget overruns and underperformance of previous titles as possible factors. Nevertheless, Kojima remains optimistic about the future of Physint, confident that the project’s creative vision is intact and that the partnership with Xbox will bring the game to fruition, all while maintaining a cordial relationship with Sony for potential future endeavors.