Sony reportedly ditched Hideo Kojima’s Physint following missed deadlines, bloated budgets, and Death Stranding 1&2 missing sales expectations

Sony discontinued its partnership with Hideo Kojima on the upcoming action-espionage title Physint, according to a Bloomberg report. The decision follows persistent project difficulties, including missed deadlines and a trajectory toward substantial budget overruns despite years of development remaining.

Multiple factors contributed to the cancellation. Kojima’s previous PlayStation releases—Death Stranding and Death Stranding 2—both underperformed commercially against Sony’s revenue expectations, despite receiving critical acclaim. These disappointing sales outcomes raised doubts about Physint’s eventual profitability. The project also faced escalating budget pressures and missed development milestones that further eroded Sony’s confidence. Sony additionally expressed concerns about maintaining permanent exclusivity for the title.

Microsoft quickly capitalized on the opportunity, securing publishing rights to bring Physint to Xbox and PC. Kojima Productions confirmed the transition via social media, assuring continued development under Xbox’s partnership.

The split carries symbolic weight for PlayStation, arriving amid other public relations challenges including announced discontinuation of physical disc support and recent console price increases. The loss represents a significant gap in PlayStation’s exclusive portfolio and marks a notable competitive gain for Xbox in acquiring a high-profile project from an internationally renowned developer.

Sources

• Sony reportedly ditched Hideo Kojima’s Physint following missed deadlines, bloated budgets, and Death Stranding 1&2 missing sales expectations
• Death Stranding Franchise Likely Barely Broke Even, Could Explain Sony Dropping Physint – Analyst
• PlayStation Ditched Kojima’s Physint Due to Missed Deadlines and Budget Concerns, Report Claims
• PlayStation’s Reasons for Cancelling Physint Revealed
• Sony reportedly dropped Hideo Kojima’s next game because it kept missing deadlines, was over budget, and would eventually come to other platforms
• PlayStation’s Shock Cancelation of Kojima’s New Game Now Makes Perfect Sense
• Former PlayStation Boss Reveals His ‘Surprised’ Reaction To Kojima’s New Xbox Partnership
• Sony Dropped Kojima’s ‘PHYSINT’ Over Budget, Profits & Timed Exclusivity Concerns, Sources Say
• Sony Stopped Physint Development Over Budget, Exclusivity Concerns
• PlayStation reportedly dumped Hideo Kojima spy action game Physint over exceeded budgets, missed deadlines, and Death Stranding sales
• PlayStation reportedly cancelled Kojima’s Physint because Death Stranding failed to meet expectations
• Bloomberg states reasons why Sony decided to cancel Physint, Hideo Kojima’s newest IP and Metal Gear Solid successor that’s coming soon to Xbox and PC