Kojima Productions’ PHYSINT Moves From PlayStation To Xbox

Kojima Productions is expanding its relationship with Xbox, with PHYSINT now being developed in partnership with them, and that’s right no longer PlayStation, which was originally the publishing partner.

The action-espionage game was previously associated with PlayStation, but Xbox and Kojima Productions have now announced they will work together on the project.

Announcing this, PlayStation posted on their socials:

“After careful consideration, we have made the difficult decision to step away from collaborating with KOJIMA PRODUCTIONS on its project PHYSINT. We continue to have great admiration for Hideo Kojima’s vision for the game.”

As shared by IGN and said by Dr Serkan Toto, CEO of Japanese games industry consultancy firm Kantan Games, this could be because Sony didn’t see the numbers they wanted from Death Stranding 2: On The Beach and, as Toto put it, “were spooked.”

Kojima games have a strong platform marketing halo effect and are not about sales alone, but it seems the steep drop-off from DS1 to DS2 spooked Sony enough to cut him off.

— Dr. Serkan Toto (@serkantoto) September 10, 2026

The move expands an existing partnership between Xbox and Kojima Productions, which already includes OD.

“This expands our relationship with XBOX beyond OD. As we move forward with the development of PHYSINT, we remain committed to redefining the action-espionage genre for players around the world,” Hideo Kojima said.

The partnership won’t be limited to games either, with Xbox and Kojima Productions planning to collaborate across film and television on future projects.

In an interview with IGN after the news, Hideo Kojima shared more from his and Kojima Productions’ side of this relationship.

“They [Sony PlayStation] said they can no longer fund development for Physint. I was shocked, and I said, “What did you say?” I couldn’t quite process what they had said. I wasn’t sure because I was in shock.

I know there’s a lot of news in the game industry that many studios are closing down, many titles are cancelled, and I understand the situation in the industry as a whole. But I thought Physint was okay. That Physint was safe. So I was surprised. But not just surprised. We didn’t understand the reason. I didn’t have any anger or sadness; my first thought was, “What am I going to do with my studio?

Nothing could’ve prepared me for their decision to step away from the project. So I thought, “What am I going to do from tomorrow?” But from my side, I love Sony. And I don’t have any bad feelings against them because I know that it’s a tough time in the game industry.”

No release date or platform details were announced for PHYSINT alongside this odd piece of news, which seemingly dropped out of nowhere.

What do you make of PHYSINT’s sudden drop from PlayStation? Let me know in the comments section below.