Hideo Kojima said he was “shocked” when Sony informed him in a Zoom call that it would stop funding Physint, the game he had been developing with the company, and that the announcement prompted immediate concern about the financial survival of Kojima Productions.
News arrived unexpectedly on a call
Kojima told IGN that he learned of Sony’s decision during a Zoom meeting with company representatives. Until that moment, he believed Physint was insulated from the wave of cancellations and layoffs affecting the games industry.
“They said they could no longer fund the development of Physint. I was shocked and said, ‘What did you say?’” he recalled.
Immediate fear for the studio’s future
Rather than focusing first on the fate of the game itself, Kojima said his initial reaction was worry for the people working at his studio. Kojima Productions had two major projects in development: Physint and OD. Losing funding for one of those projects raised the prospect of laying off staff.
The developer also disclosed that he has bank loans used to finance Kojima Productions, and that losing a project could create cash-flow problems that might threaten the company’s financial stability.
Kojima referenced the precedent of P.T., the 2014 demo tied to Silent Hills that was canceled after his departure from Konami, saying he did not want his team to face a similar outcome.
No resentment toward Sony, but unprepared for the decision
Kojima emphasized he harbors no ill will toward Sony and noted his roughly 30-year relationship with the PlayStation ecosystem, mentioning longtime executives Ken Kutaragi and Kaz Hirai. He also observed many contacts inside the company have left or retired over the years.
Still, he said “nothing could have prepared” him for Sony’s decision to abandon Physint. He did not provide a precise reason for the split in the interview; earlier reports have cited budget, schedule and prior commercial performance as factors.
Physint finds a new partner at Xbox
After Sony’s exit, Kojima spent about three months pitching Physint to prospective partners. He said he presented the project not just as a game but as an intellectual property with potential across film, television, anime, comics and music.
Several companies reacted positively, Kojima said, and his existing relationship with Microsoft helped. Kojima Productions and Xbox were already collaborating on OD, and Microsoft’s technical support and response to the Physint presentation were decisive.
According to Kojima, Xbox representatives told him, “This presentation was fantastic. We have never seen a presentation like this.” Microsoft agreed to publish the project and assumed responsibility for moving it forward.
Project updates revealed at Tokyo Game Show 2026
At Tokyo Game Show 2026, Kojima revealed that actor Bill Skarsgård will star as the protagonist of Physint and appeared in a new poster alongside Charlee Fraser. With Microsoft now attached, Physint continues development despite the earlier funding setback and the end of Kojima’s decades-long association with PlayStation for this title.
