Xbox Pays a Fraction of Kojima's $400M Physint Quote, Sources Say

Key points

• The $400 million budget figure originated from Christopher Dring of The Game Business, who later clarified that Xbox is paying considerably less.
• Bloomberg's Jason Schreier and Windows Central's Jez Corden confirmed that Microsoft's negotiated figure is significantly lower, with Corden describing it as a 'fraction' of the initial quote.
• Physint, a spiritual successor to Metal Gear Solid, was originally a PlayStation project that Sony abandoned in June due to budget overruns and missed deadlines.
• The deal with Xbox includes movie and TV licensing rights for Physint, as well as improved terms for Kojima's other project, OD.
• Kojima remains uncertain about whether Physint will eventually release on PS5, noting that such decisions will be announced later.

Background

In June 2026, Sony severed ties with Kojima Productions after Physint exceeded its budget and missed development deadlines. Microsoft subsequently stepped in to fund and publish the title, marking a shift in Xbox's strategy toward embracing exclusives, as seen with recent titles like Gears of War: E-Day.

How outlets are covering it

While The Game Business initially floated a $400 million figure, Dring later walked back the claim, stating Xbox is paying 'quite a bit less.' Bloomberg's Jason Schreier described the negotiated amount as 'significantly less,' and Windows Central's Jez Corden went further, calling it a 'fraction' of the original quote. No outlet has disclosed the exact final figure, but all agree the $400 million number was an overestimate of the actual deal.

Why it matters

The Physint deal highlights Microsoft's aggressive push to secure high-profile exclusives amid ongoing layoffs and organizational restructuring at Xbox. It also underscores the volatility of major game development budgets and the shifting dynamics between publishers like Sony and Microsoft in the current market.

What to watch

Kojima has not confirmed whether Physint will eventually launch on PS5, leaving the platform strategy open. The next major update is expected to come from Microsoft or Kojima Productions regarding the game's release timeline and platform availability.