PlayStation’s unexpected decision to walk away from Hideo Kojima’s PHYSINT may have come down to more than a change in strategy. A new report claims Sony had concerns about the game’s ballooning budget, missed development deadlines, potential profitability, and the value of funding a project that would not remain permanently exclusive to PlayStation.
Sony officially confirmed earlier this week that it was ending its collaboration with Kojima Productions, while Xbox has since stepped in as PHYSINT’s new publishing partner.
In brief:
- Bloomberg reports that PHYSINT had missed development deadlines and was heading over budget.
- PlayStation was reportedly concerned about the game’s profitability and long-term exclusivity.
- Death Stranding and Death Stranding 2 reportedly failed to meet PlayStation’s revenue expectations.
- Xbox has now partnered with Kojima Productions to continue development of PHYSINT.
PHYSINT Reportedly Faced Budget and Development Problems
According to a new report citing people familiar with the project, PlayStation’s decision was influenced by concerns surrounding PHYSINT’s budget, profitability, and exclusivity.
The report claims PHYSINT had already missed development deadlines and was projected to run significantly over budget despite still being years away from release. PlayStation was reportedly facing the prospect of investing hundreds of millions of dollars into the project.
Another reported factor was the performance of Kojima Productions’ previous games. Sources told Bloomberg that Death Stranding and Death Stranding 2 did not meet PlayStation’s revenue expectations, which may have made Sony more cautious about making another huge investment in a Kojima project.
Exclusivity Was Reportedly Another Major Concern
PlayStation was also reportedly hesitant to finance PHYSINT because the game was not expected to remain permanently exclusive to Sony hardware. Both Death Stranding games eventually expanded beyond PlayStation platforms, while Kojima Productions retained ownership of the franchise.
Sony itself has not publicly confirmed any of these reported financial or development concerns. Its official statement only said the company made the decision “after careful consideration” while stressing that its relationship with Kojima Productions remains strong.
Whatever happened behind the scenes, PHYSINT is still alive. Kojima Productions has officially confirmed Xbox as its new partner, expanding an existing relationship that already includes the upcoming horror project OD.
The studio says development on PHYSINT will continue, keeping Kojima’s long-awaited return to the action-espionage genre firmly on the table.
