Xbox's Physint Deal Costs Substantially Less Than Premium Game Budget, CEO Says

Xbox CEO Asha Sharma has indicated that the company's publishing agreement with Kojima Productions for Physint is considerably more modest than previous reports suggested. In an interview with The New York Times, Sharma stated that Xbox is spending "substantially below" what it typically invests to develop a premium game.

The confirmation comes as speculation persists around Sony's decision to drop its publishing deal with Kojima Productions. Reports suggested the game's massive budget was a key factor in Sony's withdrawal. Sharma's statement aligns with reporting from earlier in the week indicating the Xbox deal was worth "a fraction" of the rumored $400 million budget initially associated with Physint.

Bloomberg's Jason Schreier reported that someone at Xbox with firsthand knowledge of the deal told him they "signed Physint for significantly less than this." Jez Corden of Windows Central corroborated the reporting, noting that first-hand sources indicated Xbox's payment was "far lower than" the $400 million figure.

Sharma also confirmed that the Xbox and Kojima Productions agreement includes film and TV rights alongside game development. The publisher did not disclose specific financial terms of the arrangement.

Sony's decision to exit its Physint publishing agreement came after months of negotiations, according to Schreier. Reports indicated the project was "well over budget," had missed deadlines, and remained far from completion. Combined with the commercial performance of Death Stranding titles, these factors prompted PlayStation to reassess its investment in the project.

Hideo Kojima responded to Sony's exit with surprise, stating he did not expect the publisher to withdraw given that Physint "is the biggest selling title I could possibly create." He confirmed that Kojima Productions will work with Xbox's teams for "technological support" but has not yet disclosed whether Physint will release on PS5 or clarified which game engine the studio will use moving forward.