Sony reportedly walked away from Hideo Kojima’s PHYSINT after concerns over the project’s development, increasing budget and lack of long term PlayStation exclusivity, according to Bloomberg journalist Jason Schreier.
Kojima Productions recently confirmed that PlayStation Studios had ended its involvement with PHYSINT, with Xbox subsequently becoming the project’s new partner. Sony publicly expressed its continued admiration for Kojima and said it looked forward to working with his studio again, but did not provide an explanation for its decision.
According to Schreier, PHYSINT had been missing milestones, falling behind schedule and exceeding its expected budget. These issues reportedly became increasingly difficult for PlayStation to justify as the company adopted a stricter approach to evaluating projects.
“Combine the kind of uncertainty about the game’s development, the fact that Kojima was then asking for a lot of money, money in the hundreds of millions, the fact that this would not be a PlayStation exclusive, and the fact that it’s taking longer and more going to be more expensive than expected and you have the recipe for a game that is going to be cancelled,” Schreier explained.
Sony And Kojima Discussed Exclusivity
Sony and Kojima Productions reportedly discussed whether PHYSINT could remain a PlayStation exclusive for a longer period. Those negotiations ultimately failed, leading Sony to withdraw from the project and inform Kojima of its decision in June.
Kojima Productions then spent around three months looking for another partner before reaching an agreement with Xbox.
The situation reportedly reflects a broader change in PlayStation’s approach to development. Schreier said Sony has implemented a more rigorous milestone system following several high profile development problems, making the company increasingly willing to cancel or restructure projects that fail to meet its expectations.
Kojima Productions reportedly viewed the situation differently. Schreier noted that missed deadlines and rising budgets are not unusual for ambitious games, particularly projects led by established creators. He also suggested that the departure of several Sony executives who had strong relationships with Kojima contributed to the changing relationship between the two sides.
Xbox Sees Potential In PHYSINT
Xbox reportedly considers PHYSINT a worthwhile investment because of Kojima’s reputation, the project’s potential appeal in Asian markets and opportunities outside the traditional games business. The reported agreement also includes film and television rights for PHYSINT and OD.
Unlike Sony’s current approach to some single player projects, Xbox plans to release the game on PC as well, giving Kojima Productions access to a broader potential audience.
An Xbox spokesperson told Schreier, “Betting on Kojima is an easy call. We believe in his team’s ability to build AAA games with groundbreaking new IP, and we believe in OD, Physint and our growing partnership.”
PHYSINT remains one of Kojima’s most ambitious upcoming projects and has been described by the developer as a spiritual successor to Metal Gear Solid. The project represents a return to the action espionage genre after Kojima Productions’ work on the Death Stranding series.
