Physint is still in development, but its publishing path has changed sharply. Hideo Kojima says PlayStation informed Kojima Productions in a June video call that it would no longer fund the action-espionage project. The studio then sought a new partner, ultimately reaching an agreement with Xbox to continue the game.
For fans, the headline is reassuring but not simple: Physint has not been cancelled, Kojima Productions says its team remains intact, and work continues. Yet the project is still early enough that its engine has not been selected, major technology experiments are ongoing, and Xbox—not Kojima—will determine where the game eventually ships. That leaves a PlayStation version neither confirmed nor ruled out.
For the shorter version of the partner switch, see our earlier coverage: Kojima says Physint’s Sony funding ended in a June Zoom call, but Xbox development continues.
A project funding decision became a studio-level emergency
Kojima framed the situation through the reality of operating an independent studio. Kojima Productions does not have a corporate parent funding its operations as a whole; it operates through individual project contracts. That means a major project losing financial backing can affect staffing plans, cash flow and the studio’s ability to sustain itself between releases.
At the time, Kojima Productions had two projects: OD with Xbox and Physint, then associated with PlayStation. Kojima said the studio had expanded for Physint and employed about 200 people overall. His immediate concern was not anger at PlayStation’s decision, but whether the studio might have to cut the Physint team—or worse, whether the loss of the contract could put the company itself at risk.
He also described concern about loans used as the studio staffed up following the release of Death Stranding. A stopped project can carry consequences beyond the development floor: a lender’s view of the company, commitments to actors already scanned for the game, and arrangements with potential creative collaborators all become pressing concerns.
Kojima said he attended the June call with Kojima Productions president Shinji Hirano and head of talent development Aki Saito. He does not recall many details because of his shock, and said that PlayStation gave no reason for ending funding during the discussion. He further said there had been no later clarification.
That absence of an on-record explanation matters. Reports have attributed the change to possible schedule, budget, commercial-performance and platform-strategy concerns. Kojima Productions has pushed back strongly against those claims, saying they did not originate from official or on-the-record sources. The studio says it remains healthy and profitable, that development is moving forward with Xbox, and that its relationship with PlayStation remains strong.
Related coverage includes Hideo Kojima Explains How Xbox Took Over Physint After PlayStation Funding Ended.
Those are the facts that can be stated confidently: PlayStation’s funding ended, Xbox is now supporting Physint, and the exact reasons for the switch have not been publicly established by the companies involved.
How Physint moved to Xbox
Rather than treating the project as a straightforward request for a replacement game budget, Kojima said he recast the pitch around a much broader ambition. He wanted potential partners to consider Physint as a new IP—short for intellectual property—capable of extending into games, film, animation, television, comics and music.
That does not mean films, series or merchandise have been announced. It means Kojima’s stated pitch was built around the possibility that the characters, setting and ideas behind Physint could have life beyond one release. He has separately said he would like a live-action Physint film, while emphasizing that the game would come first “probably.” That language is aspiration, not a production confirmation.
Xbox was a natural company to approach because Kojima Productions was already developing OD with the platform holder. Kojima said Xbox responded enthusiastically to the Physint presentation and could offer more than financing: technical assistance, marketing support and help with activities such as playtesting.
Playtesting is the process of observing players using an unfinished game to identify confusion, balance problems, usability obstacles and other issues. It is an important form of development support, particularly for a studio working on a complex new project. The assistance Kojima described suggests the agreement encompasses practical production resources as well as money.
There was also a rapid internal response. Kojima said he informed the leaders of the Physint team three days after the funding call, telling them he would look for another partner. He temporarily reduced the team and moved some staff to OD while negotiations proceeded. He feared people might leave, but said no one did. The remaining Physint staff worked on material for the new pitch, and the team has since continued its experimental work.
What is actually known about Physint’s development
Physint is described as a new action-espionage game. Kojima has connected its origin to persistent requests from fans for another Metal Gear-like experience, while making clear that Metal Gear belongs to Konami and that Physint is a different, new project.
The project began from a discussion with former Sony Interactive Entertainment CEO Jim Ryan, whom Kojima said supported the idea of a new action-espionage game. Kojima described the partnership as something both parties had initially been excited about, which explains why the later end of funding felt especially abrupt to him.
Despite the disruption, Kojima says core work never fully stopped. He remains involved in the world, game systems, scenario, visual direction, design and modelling, as well as casting and actor scans. The project is also experimenting with systems such as enemy AI.
Enemy AI refers to the programming and systems that govern how non-player opponents perceive, react to and behave around the player. In an espionage game, that can shape fundamentals such as detection, patrol behavior, pursuit and responses to unusual player actions. Kojima says the game’s story may change in response to those experiments, underscoring that Physint is still taking shape rather than simply moving through a completed production plan.
The studio has not chosen an engine. An engine is the core software framework used to build a game, handling elements such as rendering, physics, tools and asset pipelines. Kojima was asked whether Physint would use Decima, but said no decision had been made. He instead emphasized ongoing experimentation and Xbox’s promised technological support.
Likewise, actor scanning should not be mistaken for a completed cast or a promise of a near-term release. Scans and performance capture can provide digital references or performances for characters, but Kojima said animation and motion work will change later when performance capture begins in earnest. Most of the animation team is currently working on OD, he added.
The platform question remains open
The most immediate consumer-facing uncertainty is whether Physint will still arrive on PlayStation. Kojima did not have an answer. He pointed to Xbox’s public interest in reaching players across platforms, but said any platform announcement would come later and is ultimately a question for Xbox.
That distinction is worth keeping: Xbox funding a project does not itself settle exclusivity, console timing or release format. No platforms have been officially confirmed in the information available here. Players should therefore avoid treating the publisher transition as proof that Physint is permanently absent from PlayStation—or as proof that it will appear there.
There is a broader business implication, too. The episode illustrates the precarious position of independent studios taking on ambitious, resource-intensive games. A creator may have a recognizable name, an established team and a high-profile concept, but project-based financing makes a partner decision enormously consequential. Kojima’s account is not only about one game changing backers; it is about the tight connection between funding certainty and a studio’s ability to retain people and keep creating.
For now, the practical status is clearer than the long-term roadmap. Physint continues under Xbox support. Its small core team is experimenting while many staff work on OD. Its engine and eventual platforms are undecided. And while Kojima has voiced disappointment over how the PlayStation funding decision arrived, both his comments and the studio’s statement stop well short of portraying the relationship as a public dispute.
