Hideo Kojima says Sony Interactive Entertainment gave him no warning before ending its funding for Physint. Sony has not contacted him since, while Xbox now backs the project.
Hideo Kojima says Sony Interactive Entertainment ended its financial support for Physint during an unexpected Zoom call in June. He was shocked and received no explanation. Sony notified Kojima Productions of the decision in mid-June 2026, roughly three months before Kojima spoke publicly. The move left the studio reconsidering the project's backing. Its roughly 200 employees also faced immediate uncertainty.
A sudden funding decision
Speaking to IGN, Kojima described the call as a final notice that came without a long discussion beforehand. SIE told him it could no longer fund Physint. He struggled to process the news because he believed the project was safe. Kojima said that "nothing could have prepared" him for Sony's decision.
Kojima is not describing the split as a public fight with Sony. He has not accused the company of wrongdoing. His complaint is narrower. After three decades of working with the Japanese corporation, he expected enough warning to prepare his studio for the loss of its funding.
He also said he "loves Sony" and understands that the games industry is going through a difficult period. Neither Sony nor SIE has contacted him since the June meeting.
The source material gives no reason for the decision beyond Kojima's acknowledgement that studios are closing and games are being canceled across the industry. Further reporting from GamesIndustry.biz said Sony's internal concerns reportedly included Physint's budget, potential profitability and exclusivity. The report did not describe a public dispute with Kojima.
Xbox becomes the alternative
The immediate problem was Kojima Productions itself. Around 200 people work at the studio. Losing Physint's funding raised a question about what the team would work on next, not just which platform would carry the game.
The studio has described itself as financially stable and profitable. Sony's decision on Physint therefore does not by itself show that Kojima Productions is facing a wider crisis.
Kojima turned to Xbox, which already works with the studio on the experimental horror game OD. He said the company responded positively to the Physint pitch. Both sides also shared an interest in building a larger franchise that could extend into films and television.
Kojima Productions said development of Physint is ongoing and will continue with its new partner. The studio also said its relationship with PlayStation remains strong.
Kojima said the studio spent three months looking for a new partner after Sony's mid-June decision. The move to Xbox and Bill Skarsgard's casting were covered in an earlier Physint update. His latest comments add the human and organizational cost behind the platform change.
The new arrangement is not described as a finished production plan. No release date or launch window has been supplied. OD remains a separate project being developed with Microsoft/Xbox.
Old Sony ties have faded
Kojima's disappointment also reflects a change in the people around Sony's games business. He was previously close to executives including Ken Kutaragi, Kazuo Hirai and Jim Ryan. Ryan gave Physint its initial green light.
Those executives have since left their roles. Kojima indicated that he no longer has the same relationship with Sony's current leadership.
He compared that distance with his relationship at Xbox. Kojima said he was saddened by the departure of his "buddy" Phil Spencer, but quickly connected with the new Xbox CEO Asha Sharma.
The contrast suggests that the business decision also felt like a personal break from the Sony era that shaped much of Kojima's career.
It does not make Physint's future clearer. Kojima says Xbox is enthusiastic about the pitch, and Kojima Productions has confirmed that development is continuing. The project still has no confirmed release information in the available material. Its wider franchise ambitions remain plans rather than delivered content.
The engine remains open
Even the technology behind Physint has not been settled. Kojima Productions used Guerrilla's Decima Engine for both Death Stranding games. The studio may now move to Unreal Engine after Sony withdrew its financial support.
No final engine decision has been made. A technology change can affect production tools, staff workflows and the way a studio builds its game. The source does not establish that a switch has happened or that it will delay Physint.
For players, the confirmed story is about funding and development ownership, not playable evidence. Physint remains a spiritual successor to Metal Gear, with Bill Skarsgard attached as its lead. There is no reported gameplay, release date or final engine to assess.
An engine is the software framework used to build a game's rendering, tools and underlying systems. It is not the finished game itself. Decima powered Kojima Productions' two Death Stranding projects. Unreal Engine is a separate possible route, and it has not been selected for Physint.
The clearest reading is simple. Xbox has given Kojima's project a path forward. Sony's abrupt exit has left important parts of the production undecided.
