A report has claimed that Hideo Kojima’s Physint has a budget of around $400 million at Xbox, although Bloomberg journalist Jason Schreier says Microsoft agreed to a significantly lower figure for the project.
The $400 million figure comes from The Game Business, which reported that Xbox has committed substantial investment to major projects as part of a broader strategy focused on established franchises and larger bets. The report specifically cited Physint as a game Xbox has signed with a budget reportedly around $400 million.
However, Schreier has pushed back against treating the figure as the confirmed Xbox budget. In a ResetEra comment, he explained that several different figures are involved in the project’s history, including its original PlayStation deal, subsequent negotiations and the eventual amount agreed with Xbox.
“I am hesitant to get into exact numbers without seeing documentation or corroborating them with multiple firsthand sources, as always,” Schreier said.
He added that there are “a lot of different numbers here,” including the amount Physint was originally signed for at PlayStation, the figure the project was approaching, amounts discussed during negotiations, the potential cost with certain A-list actors attached, the amount Xbox agreed to and the eventual cost of development.
“All that said, someone at Xbox with firsthand knowledge of the deal told me that they signed Physint for significantly less than this,” Schreier added.
Xbox’s New Strategy
The reported investment in Physint comes as Xbox undergoes a broader restructuring under CEO Asha Sharma. The company has been cutting costs and streamlining its operations while placing greater emphasis on major franchises and projects intended to strengthen its platform and Game Pass business.
The Game Business report said Xbox has struggled with stagnant Game Pass growth, declining console sales and weak margins despite years of spending on studios and games. The company’s revised strategy is consequently focused more heavily on established franchises and larger projects rather than smaller titles.
Alongside Physint, Xbox is reportedly increasing its investment in Halo and other major properties while reducing spending in areas considered less important to its revised strategy.
Physint is being developed by Kojima Productions as an action-espionage game with a strong cinematic focus. The project was originally associated with PlayStation before negotiations between Kojima Productions and Sony broke down, eventually leading to Xbox becoming involved.
