Hideo Kojima says Sony ended its Physint funding during an unexpected Zoom call, despite their 30-year relationship. Xbox now supports the project, which has Bill Skarsgård attached as its lead actor.
Hideo Kojima says Sony gave him almost no warning before stopping its funding for Physint. He was suddenly left responsible for the project and a studio of around 200 people. Kojima is not describing a legal fight or a corporate dispute. He is saying that a 30-year relationship deserved a more careful ending. As of September 20, 2026, Kojima Productions says it remains healthy and profitable. Physint is still in development, with Xbox now supporting its release.
Sony's abrupt exit
In an interview with IGN, Kojima said Sony Interactive Entertainment arranged a Zoom call in June. The company did not explain why the meeting was being held. During the call, Sony told him it could no longer fund Physint, a new intellectual property described as a spiritual successor to Metal Gear.
Kojima said he struggled to process the news. He knew studios were closing and games were being canceled across the industry. Even so, he believed Physint was safe. The problem was practical as well as personal. Kojima Productions had a large workforce and needed to decide what would happen next.
According to Kojima, Sony has not contacted him again since that call. He also said the company did not give him or his colleagues a reason they could properly understand. The funding withdrawal is confirmed, but Sony's internal reasoning has not been disclosed. The Washington Post reported the same account of the June meeting and the lack of follow-up described by Kojima.
Sony's public explanation was broad. The company said that, "after careful consideration," it had made the difficult decision to step away from its collaboration on Physint. Sony also said it respected Kojima's vision and that their relationship remained strong after three decades.
Xbox takes the pitch
The project did not end there. Kojima approached Xbox, which already works with his studio on the experimental horror game OD. He said the platform holder responded positively to Physint's wider plans.
Those plans go beyond one game. Kojima described a possible franchise that could include films and television. The source does not establish that any such productions have been approved or entered development. What is confirmed is that Xbox agreed to support the pitch after Sony withdrew its funding. IGN reported that Physint remains in development and has not been canceled.
Bill Skarsgård has been announced as the lead actor. That gives the project a public face, but it does not establish a release date, a list of launch platforms, a production schedule or the final gameplay design. Public accounts of the interview say the final release platforms have not yet been announced.
A relationship reset
Kojima's criticism is about the timing, not open hostility. He said he loves Sony, does not hold a grudge against the company and understands that the games industry is going through a difficult period. He still believes Sony should have spoken earlier if its support was ending after three decades of collaboration. In his view, the relationship deserved a more careful conclusion.
His comments also point to a change in the executives connected to the partnership. Kojima previously worked closely with Ken Kutaragi, Kazuo Hirai and Jim Ryan. Ryan gave Physint its initial green light. All three have since left their positions. Kojima said he quickly built a rapport with Xbox CEO Asha Sharma, even though he was saddened by the departure of his friend Phil Spencer.
The numbers show why the lack of notice mattered beyond wounded pride. Kojima Productions employs around 200 people, and Kojima says the partnership lasted 30 years. No development budget or cancellation figure has been disclosed. Kojima Productions' description of itself as healthy and profitable indicates that the funding change did not shut down the studio. It does not reveal the project's budget or its revised production costs.
The engine remains undecided
Physint's technology is still unsettled. Kojima Productions used Guerrilla's Decima Engine for both Death Stranding games. Kojima said the studio has not made a final decision about the engine for the new project.
Unreal Engine is now one possibility, especially after Sony's funding withdrawal. The source does not confirm that the switch has happened. An engine change can affect development tools, staffing, workflows and production timing. None of those effects has been quantified here.
That uncertainty matters as much as the platform change. Physint has a new funding partner, a named lead actor and plans that could reach beyond games. It still has no reported release information, no announced target platforms and no public technical demonstration showing how the finished game will play.
An engine is the framework used for rendering, animation, physics and development tools. Changing it does not change a game's visual style overnight. Decima powered Kojima Productions' previous two games, while Unreal Engine remains only a possible alternative in this account. The facts point to a simple conclusion. Sony handled the funding exit poorly from Kojima's perspective. Xbox gave Physint a way forward. The project is still too early for players to judge its unsettled business and technology foundations.
