Kojima Productions disputes reports the studio is in trouble

Kojima Productions has pushed back against reports suggesting the studio faces financial difficulties following Sony's decision to end funding for Physint.

Bloomberg reported that Sony's withdrawal from the project was driven by missed deadlines, budget concerns, profitability issues, and questions about timed exclusivity. The game is now headed to Xbox instead. In response, Kojima expressed concern about the industry's broader climate, where studios have closed and projects cancelled.

"I know there's a lot of news in the game industry that many studios are closing down, many titles are canceled, and I understand the situation in the industry as a whole," Kojima told IGN. "But I thought Physint was okay. That Physint was safe. So I was surprised. If we lose one contract, I thought I might have to cut all the people working on Physint, right? Or our studio could end up collapsing because we'll run out of cashflow."

Kojima Productions responded via social media to counter rumors about disappointing Death Stranding sales and the loss of Sony funding. The studio stated it is "in a healthy, profitable state" and that its "relationship with PlayStation remains strong."