PlayStation dropped Hideo Kojima's Physint because of missed deadlines, budget concerns, and issues over intellectual property ownership, according to a Bloomberg report. The espionage title, considered a spiritual successor to the Metal Gear series, will now be funded by Xbox, marking Kojima's second collaboration with Microsoft after the upcoming horror game OD.
Bloomberg report details Sony's reasons for cancelling Physint
An article from Bloomberg claims that Sony pulled out of Physint due to a combination of budget concerns, the potential profitability of the game, and problems surrounding exclusivity and IP ownership. The Death Stranding games were reportedly a key factor, with both titles described as not meeting PlayStation's revenue expectations.
It is also claimed that Physint had already missed deadlines and was on track to be well over budget despite being years away from release. Sony was apparently concerned about investing millions of dollars into another Kojima title that would not be permanently exclusive to PlayStation consoles, much like both Death Stranding games, which were timed exclusives with the IP ultimately owned by Kojima.
Sony's PC strategy and IP ownership influenced the decision
Sony's decision to pull away from releasing its games on PC was also described as a key factor, because it would not earn any money from a PC version of Physint if it was published by Kojima Productions or another company. Under Xbox's leadership, Physint is set to be released across Xbox and PC, according to the report.
When laid out like that, it is easy to see why Sony pulled out from a business perspective, especially as it would not own the IP. In fact, if this is all true, it is surprising Death Stranding got a sequel at all. However, if Sony was not happy with the sales of the Death Stranding games, it is difficult to understand why they agreed to partner with Kojima on Physint in the first place. Death Stranding 2 was released in June last year and Physint was originally announced in 2024, so maybe they expected the sequel to deliver better results.
Personnel changes at PlayStation and future under Xbox
In a follow-up post on Bluesky, Bloomberg's Jason Schreier noted that some PlayStation executives who worked closest with Kojima in the past are no longer at the company, which might explain why they have decided to part ways now too.
The big question now is whether Physint will materialise under Xbox, who have shown a complete inability to manage studios over recent years, with a dismal lack of games and a comprehensive list of studio shutdowns. We still do not have a release date for OD yet, so do not expect to see Physint anytime sooner, let alone a release date.
