Hideo Kojima Details Sony's Sudden Cancellation of Physint
Hideo Kojima reveals how Sony abruptly ended Physint funding and how Microsoft rescued the project.
Game developer Hideo Kojima has spoken out about the moment Sony abruptly pulled funding from his upcoming action title, Physint. In a discussion with IGN, Kojima explained that a June Zoom call with PlayStation executives left him completely stunned. He attended the meeting alongside Kojima Productions president Shinji Hirano and head of talent development Aki Saito.
During the call, PlayStation representatives informed the leadership team that funding for the spiritual successor to Metal Gear Solid was ending immediately. Kojima admitted his mind went blank upon hearing the news, leaving him unable to process what was happening. At the time, his studio was balancing two major projects: Xbox title OD and the PlayStation-backed Physint.
Fear of Studio Collapse and Keeping Secrets
The sudden cancellation triggered immediate anxiety about the survival of Kojima Productions. Because the independent studio relies on project-by-project contracts to maintain cash flow, losing a major partner threatened its financial stability. Kojima worried he might have to lay off developers hired specifically for the Physint team, or default on bank loans acquired to expand the company after Death Stranding.
To prevent panic, Kojima kept the cancellation a secret from his employees for days. He was concerned about the morale of staff members who had left large corporations to join his company, as well as actors he had already scanned and artists he had contacted for collaborations. He wanted to avoid a repeat of the unannounced cancellation that happened with P.T.
Securing a New Deal With Xbox
Despite the setback, Kojima managed to pivot quickly. Microsoft and Xbox boss Asha Sharma agreed to pick up the project, shifting the formerly PlayStation-exclusive game to a new platform. This marked one of the most dramatic console switches in the history of the video game industry.
Kojima Productions later issued a statement insisting the studio remains profitable, that development on Physint is moving forward with Xbox, and that its relationship with PlayStation is still strong. This interview took place prior to a Bloomberg report alleging that Sony dropped the project due to missed deadlines, budget issues, and commercial concerns surrounding Death Stranding.
