PlayStation has reportedly withdrawn from publishing Hideo Kojima’s Physint, with the project’s rising costs, missed deadlines and long development timeline among the reasons behind the decision. Xbox is now reported to be stepping in to fund and publish the game.
Why PlayStation reportedly dropped Physint
People familiar with the project claim that the commercial performance of Death Stranding and its sequel did not reach PlayStation’s revenue expectations. The report also says that Physint had fallen behind schedule and was heading towards an over-budget production.
With the game still believed to be years from completion, it represented a substantial and increasingly costly investment. PlayStation was also reportedly reluctant to commit hundreds of millions of dollars to a project that, like Death Stranding, would not necessarily remain exclusive to its console.
A significant change in the Kojima-PlayStation relationship
The reported split is notable given the companies’ long history. PlayStation was the main console home of the Metal Gear Solid series for decades, and it supported Kojima after his highly publicised 2015 departure from Konami. That backing helped bring Death Stranding to life.
However, many PlayStation executives who had built close working relationships with Kojima have since left the company. The executives who remain are reportedly less convinced that financing another large Kojima production represents good value.
Why Xbox sees an opportunity
Xbox and its new CEO, Asha Sharma, reportedly view Physint as a worthwhile investment partly because of its approach to PC releases. PlayStation is reportedly moving away from PC versions of its major single-player games, while Xbox releases its titles on PC and is expected to follow the same strategy with Physint.
The reported Xbox agreement also includes film and television rights for Physint and Kojima’s other current project, the horror game OD. Xbox was already publishing OD under an earlier arrangement.
“Betting on Kojima-san is an easy call,” an Xbox spokesperson said. “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.”
Another setback for PlayStation
The timing adds pressure to a difficult period for PlayStation. The company’s announcement that physical game production will end in 2028 has triggered an ongoing backlash among fans. Its upcoming exclusive Wolverine has also received mixed critical reactions, while several live-service projects have struggled or been cancelled.
The short-lived Concord, changes involving Bungie and Destiny 2, and the closure of studios including Bluepoint have further frustrated players. Against that backdrop, losing a project believed to be a Metal Gear-style stealth-action game represents another unwelcome headline.
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