Kojima Productions responds to Sony dropping Physint! Learn about the new Xbox partnership, studio financial health, and future release details.
Iconic game director Hideo Kojima and his independent studio Kojima Productions have officially addressed mounting industry rumors surrounding PHYSINT, the highly anticipated action-espionage game originally announced alongside PlayStation Studios in 2024. Following Sony's sudden decision in mid-June 2026 to withdraw publishing support and cancel its involvement, Kojima Productions secured a new publishing deal with Xbox Game Studios to keep the project alive. In a formal statement released on September 20, 2026, the developer pushed back against unverified reports regarding production budgets, sales figures, and internal friction, confirming the studio remains profitable while actively developing the title alongside Microsoft.
Why Did Sony Step Away From Publishing PHYSINT?
The shift in publishing partners began in mid-June 2026 when PlayStation Studios unexpectedly informed Hideo Kojima that it was ending its involvement with PHYSINT.
- Unexpected Cancellation Notice: Kojima revealed that Sony informed the studio of its exit during a remote meeting, forcing the independent team to spent nearly three months searching for an alternative partner.
- Media Speculation on Budgets and Exclusivity: Subsequent media reports claimed Sony withdrew due to concerns over high development budgets, missed production milestones, and uncertainties regarding permanent PlayStation console exclusivity.
- Commercial Claims Involving Death Stranding: Unofficial reports also pointed to the commercial performance of the Death Stranding franchise as a factor in Sony's strategic retreat.
How Did Kojima Productions Respond to the Online Rumors?
On September 20, 2026, Kojima Productions released an official statement on X (formerly Twitter) directly addressing the claims made by industry commentators and outlets.
- Rejection of Unsubstantiated Sources: The studio emphasized that none of the claims regarding production planning, investments, or sales performance came from official or on-the-record sources, urging fans to view them with skepticism.
- Financial Stability Confirmed: Kojima Productions clarified that despite the serious disruption caused by losing its original publisher, the studio remains in a healthy, profitable financial state.
- No Ongoing Conflict With PlayStation: Kojima confirmed there is no legal dispute or bad blood between the entities, stating that the relationship with PlayStation remains strong as the studio continues to collaborate across other industry avenues.
What Is the Current Status of PHYSINT's Development With Xbox?
With Xbox Game Studios stepping in to fund and publish PHYSINT, production on the action-espionage game continues without interruption.
- Expanded Microsoft Partnership: PHYSINT expands Kojima Productions' existing partnership with Xbox, which already includes the upcoming horror title OD.
- Star-Studded Cast Additions: During the Xbox broadcast at Tokyo Game Show 2026, Kojima Productions confirmed Hollywood actor Bill Skarsgård as the lead role, joining an announced cast that includes Charlee Fraser, Don Lee, and Minami Hamabe.
- Hybrid Interactive Medium: Conceptualized as both an interactive game and a cinematic experience, PHYSINT aims to deliver groundbreaking visuals and storytelling that blur the lines between film and AAA gaming.