Hideo Kojima’s Physint reportedly has a budget of around $400 million under Xbox, according to a new report from The Game Business. The figure comes after Xbox took over the project following negotiations between Kojima Productions and PlayStation that failed to produce an agreement.
The report describes Physint as part of a broader shift in Xbox’s strategy under Asha Sharma, with the company focusing its spending on major franchises and larger projects while reducing investment in areas that are considered less important to its new direction.
Xbox Reportedly Investing $400 Million In Physint
According to The Game Business, Xbox is investing heavily in selected projects as part of its new strategy, with Physint among the major bets. The report states that the game has a budget reportedly around $400 million.
The reported figure aligns with a rumor discussed by Bloomberg’s Jason Schreier. Schreier indicated that the amount Kojima Productions sought from PlayStation was substantial, although he emphasized that he had not independently verified the figure.
“The rumored number, I have not confirmed a number, but the rumored number was pretty significant,” Schreier said.
Schreier also indicated that Xbox did not simply match the figure reportedly requested from PlayStation. “That doesn’t mean that Xbox was willing to pay that much,” Schreier explained. “And in fact, I think Xbox paid less than Kojima might have been asking PlayStation for at the end of the day.”
Xbox’s New Strategy
The reported investment comes as Xbox restructures its business around larger franchises and major projects. The company has been reducing costs and streamlining operations while also making selected investments intended to strengthen its core gaming business.
The Game Business report says Xbox has faced slower-than-expected Game Pass growth, declining console sales and weak margins. The company had previously invested heavily in acquiring studios and expanding its games portfolio, but the report says those investments did not produce the expected growth in the subscription business.
Alongside Physint, Xbox is reportedly investing in a new Halo team as part of its focus on established franchises. The broader strategy is also described as placing greater emphasis on selected exclusive titles and the Xbox platform.
Physint is an upcoming action-espionage game from Kojima Productions that is intended to blend interactive gameplay with cinematic presentation. The project was originally associated with PlayStation before Xbox became involved following the breakdown of negotiations between Kojima Productions and Sony.
