PHYSINT was nearly canceled by PlayStation Studios in June, according to Hideo Kojima, before KOJIMA PRODUCTIONS found Xbox as a new publishing partner and kept the espionage project alive. Development is continuing after Xbox agreed to publish the game.
Kojima said PlayStation Studios unexpectedly notified the team in mid-June that it planned to cancel PHYSINT. He wrote, “As confirmed earlier through our official channels, in mid-June of this year, we unexpectedly received notice from PlayStation Studios that they would cancel the PHYSINT project.” Kojima described the project as personally important to him and KOJIMA PRODUCTIONS, which then spent the following three months searching for another partner before finding common ground with Xbox.
As confirmed earlier through our official channels, in mid-June of this year, we unexpectedly received notice from PlayStation Studios that they would cancel the PHYSINT project. PHYSINT is an important project both to me personally and to KOJIMA PRODUCTIONS. Determined to keep… pic.twitter.com/rQqhxAnb7N
— HIDEO_KOJIMA (@HIDEO_KOJIMA_EN) September 10, 2026
PlayStation and Xbox announced the change within two minutes of each other, with the Xbox post dated September 9 and PlayStation’s dated September 10. In its public statement, PlayStation said, “After careful consideration, we have made the difficult decision to step away from collaborating with KOJIMA PRODUCTIONS on its project PHYSINT.” The company did not describe the move as a cancellation, leaving Kojima’s June account to provide that part of the timeline.
PlayStation praised Kojima’s vision and said its relationship with the creator remained strong after three decades of creative work, but it did not explain why the project was abandoned. Xbox’s September 9 announcement through an official Xbox News post gives the project a new business path after the original PlayStation arrangement ended.
Shuhei Yoshida was surprised by PlayStation’s decision
Shuhei Yoshida, who previously served as president of Sony Interactive Entertainment Worldwide Studios, reacted to the change with surprise in a brief X reply. He repeated that reaction when someone asked him directly about Sony’s decision.
（´-`）.｡oO（びっくりしたなあ｡｡｡）
— Shuhei Yoshida (@yosp) September 10, 2026
びっくり
— Shuhei Yoshida (@yosp) September 10, 2026
Yoshida’s replies do not explain why Sony left the project, but they show that the change was not an obvious outcome even to a former senior PlayStation executive. PHYSINT has been presented as Kojima’s spiritual successor to Metal Gear Solid, which makes its move away from Sony’s orbit more notable.
Xbox was already working with KOJIMA PRODUCTIONS on the horror game OD, so the new PHYSINT arrangement expands an existing relationship rather than creating an entirely new one. The expanded publishing arrangement puts Xbox in a central role while KOJIMA PRODUCTIONS continues development, but it does not confirm which platforms will receive the game. Publishing rights and platform availability are separate decisions, so an Xbox publishing deal does not automatically confirm an Xbox console release.
PHYSINT had been presented as a PlayStation project since its reveal in 2024, and its cast was already taking shape. Charlee Fraser, Don Lee, and Minami Hamabe were attached to the game, while 3Lateral was working on facial models, as detailed in the PHYSINT cast reveal.
Xbox’s publishing policy keeps PC in the conversation
Xbox’s involvement makes a PC version easier to picture than it was under a PlayStation-backed publishing arrangement. Asha Sharma has said selected games published by Xbox can remain console exclusive while still launching on PC on day one. Under that model, a title could skip PlayStation 5 and Nintendo Switch 2 without skipping PC.
PHYSINT and OD! Proud to build both with @HIDEO_KOJIMA_EN in Japan. A big moment for XBOX. pic.twitter.com/X3JG0lIB9F
— ASHA (@asha_shar) September 10, 2026
That policy still does not amount to a promise for PHYSINT. Publishing rights and platform availability are separate decisions, so the project could yet take a different approach. For now, Xbox’s role creates a credible PC route, not a confirmed release plan.
PHYSINT still has a long road ahead
PHYSINT was announced during Sony’s January 2024 State of Play. Kojima has described it as a tactical espionage action game that will also function as a movie, and no gameplay footage or release window has been announced.
The project had previously been described as using Decima, the engine built by Guerrilla Games and owned by Sony. Decima is also used in titles including Death Stranding 2, but it remains unclear whether development will continue with the engine after PlayStation Studios’ exit.
Kojima previously said completing the project could take another five or six years, which would place its launch beyond 2030 if that estimate holds. Xbox’s publishing deal changes who is guiding the game’s route to market, but it does not make the wait any shorter or settle where players will eventually be able to play it.
For now, the clearest change is not a confirmed platform release but a new company behind the game’s publishing. Kojima’s team has kept PHYSINT moving after PlayStation’s exit, while the project’s unusual game-and-film ambitions remain intact.
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