Hideo Kojima Shocked by Sony's Physint Cancellation Over Zoom Call

Sony's decision to cancel funding for Hideo Kojima Productions' Physint came as a profound shock to the veteran designer. In June, Sony contacted Kojima to schedule a Zoom call, during which the company announced it could no longer fund development on the espionage game.

"They said they can no longer fund development for Physint. I was shocked and I said 'What did you say?'" Kojima told IGN. "I couldn't quite process what they had said. I wasn't sure because I was in such shock."

Kojima believed Physint was insulated from the broader industry downturn that has shuttered studios and cancelled projects throughout 2026. "This is the biggest selling title I could possibly create," Kojima explained to The Washington Post. "I didn't think Physint would be on the list of being canceled."

The cancellation posed an immediate existential threat to Kojima Productions. The studio is an independent operation dependent on publisher funding, and the loss of Physint's financing left Kojima facing the possibility of closing or laying off staff. "We're an independent studio. That means if they can't fund us, our studio could collapse," he said.

Kojima had previously borrowed money from banks to support operations. "If they find out a project has been stopped or cancelled, we'd be in big trouble," he explained. His priority after the shock was protecting his employees. "I can't really tell them the game has been cancelled. I didn't want to do the same thing we did for P.T. Of course, I didn't want to worry."

Rather than pitch Physint as a standalone game, Kojima repositioned it as a broader intellectual property with multimedia potential spanning film, television, anime, comics and music. "Everyone had positive reactions," he recalled of the pitches. Kojima sought a publisher capable of supporting such ambitious cross-media plans.

Microsoft proved willing. "I approached Xbox and they were great. They could support us technically. And also we've been working on OD with them, so we already had a connection," Kojima told IGN. "I made a proper pitch of Physint to them. And then their first reaction was like: 'This pitch was fantastic. Never seen a pitch like this!' And that was how it started with Xbox."

The transition took approximately three months of frantic negotiation. Kojima Productions issued a statement reaffirming the studio remained in a "healthy, profitable state" and that "our relationship with PlayStation remains strong," while confirming development of Physint continues under Xbox's publishing partnership.

Kojima acknowledged his relationship with Sony had shifted over the decades. "I've been working with them for like 30 years… Mr Ken Kutaragi, Mr. Hirai, I was close with them. But it's not like that recently," he said. Despite the abrupt cancellation, Kojima harbored no resentment. "Nothing could've prepared me for their decision to step away from the project," he reflected. "But from my side, I love Sony. And I don't have any bad feelings against them."

The cancellation reversed what had appeared to be Sony's strong commitment to Physint. During a 2024 State of Play showcase, PlayStation executive Hermen Hulst stood alongside Kojima to reveal the project, promising it would integrate gaming and film collaboration more closely than any previous Kojima title, with involvement from Sony Pictures and the company's music division.