Instead, the virtual meeting delivered a career-shaking disruption. Representatives from Sony informed the legendary auteur that the company was pulling its financial support from Physint, the spiritual successor to the iconic Metal Gear series.
The sudden severance of a decades-long relationship left Kojima and his executive team stunned. With no prior warning or explanation offered during the brief video conference, the studio’s future hung in the balance.
The Zoom Call That Stunned Kojima Productions
The unwelcome news was delivered during a June video meeting that included Kojima, his translator Aki Saito, and Kojima Productions president Shinji Hirano. According to accounts shared with IGN Japan, the abrupt decision completely caught the studio off guard.
“I couldn’t quite process what they had said. I wasn’t sure because I was in shock.”
Hideo Kojima, Game Director
Kojima noted that former Sony Interactive Entertainment CEO Jim Ryan had retired, but he had assumed Physint was a collaborative project firmly backed by the publisher. The unexpected pullout meant the immediate termination of development funds for a title that had been slated as a major PlayStation exclusive.
Financial Fallout and the Threat of Studio Collapse
Operating as an independent developer means Kojima Productions relies on project-by-project contracts to survive. Losing a primary financier overnight created an immediate existential crisis.
Kojima admitted that he initially kept the cancellation hidden from his staff because he feared the studio might collapse under the sudden financial strain. With bank loans secured to expand operations following the launch of Death Stranding, a halted project threatened both staff livelihoods and the studio’s liquidity.
To prevent immediate layoffs, Kojima temporarily shifted a portion of the Physint development team over to work on OD, a separate horror title being developed in partnership with Microsoft. Meanwhile, Bloomberg reported that Sony’s decision stemmed from concerns over missed deadlines, expanding budgets, and the commercial performance of the Death Stranding franchise. Kojima Productions responded by issuing a statement advising fans to view unverified financial claims with skepticism, maintaining that the studio remains in a healthy and profitable position.
How Microsoft and Xbox Rescued the Project
Needing a new home for Physint, Kojima approached multiple potential partners before turning to Microsoft. Working alongside new Xbox gaming division head Asha Sharma, Kojima pitched the title as more than just a standalone video game.
By framing the espionage title as a sprawling multimedia IP spanning games, movies, and anime, Kojima secured immediate backing from Microsoft. WinFuture noted that the partnership is planned to encompass joint projects across film and television, with Kojima previously pointing to modern performance-capture and engine technologies that blur the lines between films and games.
“They could support us technically. And also we’ve been working on OD with them, so we already had a connection. 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’s how it started with Xbox.”
Hideo Kojima, Game Director
Reflections on a Three-Decade Relationship with PlayStation
Despite the abrupt nature of Sony’s exit, Kojima maintains that he holds no grudge or ill-will toward the company. WinFuture noted that Sony released a separate official statement confirming that after careful consideration it made the difficult choice to conclude collaboration on Physint while emphasizing that its relationship with Kojima Productions remains strong after three decades.
However, he acknowledged that he wished a 30-year professional relationship had concluded with a bit more advance notice rather than a summary digital meeting. With the transition to Xbox now finalized, Kojima Productions moves forward with its dual-project pipeline under new publishing alliances, though Physint remains without an official release date as the developer rebuilds its dedicated team.
