Bloomberg Report: Sony Canceled Kojima's Physint Over Budget Overruns and Revenue Fears

Key points

• Bloomberg reported that Sony sought to cancel Physint because the project missed deadlines and was projected to exceed its budget despite being years from release.
• Sony's decision was influenced by the underperformance of Kojima's previous titles, Death Stranding 1 and 2, which failed to meet PlayStation's revenue targets.
• Microsoft acquired publishing rights for Physint, securing exclusivity for Xbox and PC platforms, while Sony exited the project.
• Kojima Productions expanded its partnership with Xbox to include collaborations in film and television, extending beyond traditional game publishing.
• Physint is described as an action-espionage title and a successor to the Metal Gear Solid franchise, with a release estimated several years away.

Background

In September 2026, Sony ended its collaboration with Kojima Productions, citing budget and profitability concerns. Microsoft quickly stepped in to publish Physint, marking a significant shift for Kojima's multi-platform and cross-media ambitions. The game was originally announced in 2024, with Kojima previously stating it could take five to six years to complete.

How outlets are covering it

Windows Central highlighted the financial and scheduling failures as the primary drivers for Sony's cancellation attempt, emphasizing the risk of non-exclusive hardware. Xbox Wire focused on the strategic expansion of the partnership, framing the move as a support for creative ambition and cross-media collaboration, without detailing the internal financial disputes.

Why it matters

The shift from Sony to Microsoft signals a major realignment in AAA publishing, demonstrating how budget overruns and revenue expectations can force high-profile developers to pivot platforms. It also highlights the growing importance of cross-media rights and multi-platform exclusivity in modern game development.

What to watch

Kojima Productions will continue developing Physint under Microsoft's publishing umbrella, with potential film and television adaptations. The game is not expected to launch until at least 2030, while Kojima's other title, OD, remains in development for Xbox's next-gen Project Helix.