Hideo Kojima expressed genuine bewilderment when he learned that Sony had placed his upcoming project, Physint, on a cancellation list. In his view, the title represented "the biggest‑selling game I could possibly create," a statement that underscores his confidence in the project's commercial potential. During an interview with The Washington Post, Kojima explained that the news caught him completely off‑guard.
"We couldn't understand it," he said, noting that even though Sony’s former head of PlayStation, Jim Ryan, had stepped down, he believed the partnership between Sony Interactive Entertainment and his studio was firmly established and mutually beneficial. "I was shocked and surprised. I felt no anger or sadness, just a practical question: 'What should I do next?' It was a serious issue for us, and at that moment I couldn’t even inform my team about what was happening," he added. On September 10, Kojima made a public statement revealing that his studio had "unexpectedly received notice from PlayStation Studios" in mid‑June indicating that funding for Physint would be withdrawn.
He emphasized the precarious nature of independent development: "We are an independent studio. If they can't fund us, the entire operation could collapse. Many developers who have gone independent struggle to achieve lasting success." Kojima stressed that the potential shutdown of his own studio would send a discouraging signal to other indie creators, saying, "If my studio were to close, it would reinforce the notion that independent studios are too risky.
I wanted to stand up for the indie community, so I needed to secure a new partner as quickly as possible." The search for a new backer led Kojima Productions to Xbox, which has also agreed to support the studio’s forthcoming horror project, OD. Kojima clarified that the shift in funding did not result in any layoffs; instead, the existing staff were reassigned, with a small core team continuing work on Physint while the majority of developers turned their attention to OD. According to Kojima, Sony never offered a concrete explanation for pulling the plug on the project.
A Bloomberg report, however, suggested that Physint had missed several internal milestones and was projected to exceed its budget by a significant margin, even though the game was still years from a potential release. Additional sources hinted that the financial performance of Death Stranding and its sequel fell short of Sony’s expectations, possibly influencing the decision.
In response to the circulating rumors, Kojima Productions issued a statement emphasizing that none of the claims originated from verified, on‑the‑record sources and urging the public to treat the information with caution. "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: 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 read. Kojima reiterated that, despite the funding shift, the studio still maintains a cordial relationship with Sony. "Corporations are like living organisms," he observed. "We’re not in a dispute.
We’re not fighting with them." He also provided an update on the creative progress of Physint. The narrative and core game concept have been fully fleshed out, and the team has begun constructing three‑dimensional models of the characters.
Various game engines are currently being evaluated to determine the best technical foundation for the title. Kojima highlighted that the talent pool—actors, artists, and other collaborators—has already been approached and has expressed enthusiasm for participating in the project.
"I can’t tell them the game is cancelled, especially after what we endured with PT. I didn’t want to go back and inform the actors that the project was dead," he explained, referencing the challenges faced during the development of the controversial title PT. Looking ahead, Kojima Productions plans to continue refining Physint under Xbox’s banner, leveraging the new partnership to secure the resources needed for a polished final product. The studio aims to preserve the original vision while potentially incorporating feedback from both Sony and Microsoft to ensure the game meets the high expectations set by its ambitious premise.
The transition also offers an opportunity to explore fresh technological possibilities, as the team tests multiple engines and iterates on the 3D assets already in production. In summary, while the withdrawal of Sony’s funding created an unexpected hurdle, Hideo Kojima’s resolve to see Physint through remains steadfast. By aligning with Xbox, the studio hopes to maintain momentum, protect its workforce, and ultimately deliver a game that lives up to the promise of being "the biggest‑selling title he could possibly create."