PlayStation Reportedly Ended Physint Involvement Over Budget and Exclusivity Concerns

PlayStation reportedly discontinued its involvement with Kojima Productions' Physint due to concerns over budget, potential profitability, and exclusivity. Sources familiar with the project told Bloomberg that Physint, which was announced in 2024, missed deadlines and was on track to be well over budget despite being years away from release.

Reports also indicated that Death Stranding and its sequel did not meet PlayStation's revenue expectations. Sources stated that PlayStation was reluctant to invest hundreds of millions of dollars in another game from Kojima Productions that would end up being a timed exclusive. Death Stranding launched exclusively on PlayStation in November 2019 before releasing on PC in July 2020 and on Xbox and Amazon Luna in November 2024. Its sequel was also a timed exclusive, launching in June 2025 and releasing on PC in March 2026.

Last Thursday, Hideo Kojima stated that his studio unexpectedly received notice from PlayStation in mid-June that they would cancel the Physint project. In a separate statement, PlayStation said it made the difficult decision to step away from collaborating with Kojima Productions on Physint, but added that its relationship with the studio remains strong and it looks forward to continued close collaboration.

Kojima Productions has since found a new partner for Physint with Xbox. The studio previously partnered with Xbox for its in-development horror title OD. Sharma stated that creators have choices about where and how they bring their ideas to life, and expressed honor that Kojima chose Xbox to work on Physint. Kojima added that the move expands the studio's relationship with Xbox beyond OD and keeps the team committed to redefining the action-espionage genre for players around the world.