Hideo Kojima’s Physint has moved from PlayStation to Xbox after Kojima Productions revealed that PlayStation cancelled the project in June. Kojima said development of the action-espionage game remains underway and will continue with a new partner.
Why PlayStation dropped Physint
Physint was announced during a 2024 State of Play as an action-espionage title and has often been described as a spiritual successor to Metal Gear. Reports indicate that the project was already heading over budget despite being years from release, while missed deadlines added further pressure.
PlayStation was also reportedly uncomfortable investing hundreds of millions of dollars in a game that was not guaranteed to remain exclusive. Kojima Productions’ recent projects have appeared across multiple platforms, reducing the long-term value of a major single-platform investment.
The decision reflects the wider financial risk facing large modern productions. For more background on how game hardware and software choices affect buyers, see RETROCADE’s Arcade Machine Buying Guide.
Death Stranding sales fell short of expectations
The commercial performance of Kojima Productions’ recent games appears to have influenced the decision. Death Stranding 2: On the Beach has sold an estimated 2.5 million copies, including 1.8 million on PlayStation 5 and the remainder on Steam.
The original Death Stranding sold 5 million copies in a comparable period and reached 19 million players over five years. It was also available through Xbox Game Pass for a period and was given away on the Epic Games Store. Combined revenue for the two games has been estimated at about $413 million, against combined budgets of $250 million to $300 million.
The publishing arrangements made the situation more complicated. Kojima Productions partnered with 505 Games to release the first Death Stranding on Windows PC, Xbox Series X and mobile platforms. If Physint followed a similar path through another publisher, PlayStation would not necessarily receive revenue from PC or other versions.
A long relationship changes direction
Sony’s relationship with Kojima stretches back to the PlayStation release of Metal Gear Solid in 1998. Sony also became an early partner of Kojima Productions after Kojima and his long-time publisher Konami separated.
That relationship has weakened as executives who had close ties with Kojima have left PlayStation. The company’s stricter production milestones also followed several live-service failures, including Concord, making an expensive project with missed targets harder to justify.
Xbox becomes Kojima’s new partner
Kojima Productions already has a relationship with Xbox through OD, its upcoming horror game. Xbox CEO Asha Sharma said the company was honoured that Kojima had chosen Xbox for Physint, adding that his willingness to challenge conventions matched the creativity Xbox wanted to support.
The change gives Physint a new home, but it does not make the project risk-free. Xbox is carrying out layoffs expected to affect thousands of employees, raising questions about how it will fund a large Kojima production while reducing costs elsewhere.
For Australian arcade fans, the story is a reminder that even major publishers now scrutinise development budgets, platform reach and expected returns. Those same practical considerations matter when choosing between full-size arcade machines, compact bartop arcades and a custom home project.
What happens next?
Physint is still in development, but no release date, final platforms or budget have been announced in the available information. Its move to Xbox resolves the immediate publishing question while leaving the larger challenge unchanged: delivering an ambitious action-espionage game without repeating the cost and schedule problems that contributed to PlayStation’s cancellation.
For more coverage of gaming business news and changing hardware partnerships, browse the RETROCADE Arcade Blog and Arcade Videos.
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