SIE Pulls Out of Kojima’s New Title ‘PHYSINT’ — Director Set to Sign With Xbox

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The story

PlayStation Studios announced it is withdrawing from its collaboration with KOJIMA PRODUCTIONS on the upcoming title PHYSINT. In response, Hideo Kojima took to X to explain the situation, revealing that SIE abruptly notified him of the project’s cancellation in mid-June this year, and that after three months of searching for a new partner, he has decided to team up with Xbox once again. On 5ch, the news sparked surprise that the split was SIE’s decision, along with speculation about the underlying causes — including sluggish sales of Death Stranding 2 and Kojima’s reported opposition to Sony’s plan to discontinue physical discs.

What people said

1AnonymousSep 10, 2026 11:48
Update from PlayStation Studios: After careful consideration, we have made the difficult decision to step back from our collaboration with KOJIMA PRODUCTIONS on the PHYSINT project.
We continue to hold tremendous respect for Hideo Kojima's vision for the game.
Our relationship remains strong even after 30 years of industry-leading, genre-defining creative collaboration.
3AnonymousSep 10, 2026 11:50
From Kojima's tweet ↓

As just announced in KOJIMA PRODUCTIONS' official release, in mid-June this year we suddenly received notice from SIE that the "PHYSINT" project currently in development would be cancelled. PHYSINT is a project that matters deeply to both myself and KOJIMA PRODUCTIONS, and for the past three months we have been searching relentlessly for a "new partner" so we could carry on with it no matter what. After consulting with people from many different fields and advancing negotiations, we have decided to team up once again with XBOX, a partner who shares our "vision for the future." Please don't worry — development of PHYSINT, the next-generation "espionage action" title, is continuing.

Sounds like Sony's the one who cut them loose (´・ω・`)
9AnonymousSep 10, 2026 11:51
Re: #3
If they were going to cut ties,
why partner up in the first place?
104AnonymousSep 10, 2026 11:59
Whoa…
Wait, Sony was the one who cut them loose?
121AnonymousSep 10, 2026 12:00
Re: #104
It says right there, 'suddenly, from SIE' Re: #3
4AnonymousSep 10, 2026 11:50
6AnonymousSep 10, 2026 11:50
Sony's really
losing it lately
228AnonymousSep 10, 2026 12:08
Re: #6
Death Stranding 2 was such a dud, no wonder they got cut
14AnonymousSep 10, 2026 11:51
Of all places, Xbox — the news thread is going wild
23AnonymousSep 10, 2026 11:52
Re: #14
lol
Well, I can't be bothered visiting that cesspit anyway, so I've got no interest in checking how it's going
100AnonymousSep 10, 2026 11:59
Re: #14
SIE's the one who cut them loose — 'of all places' doesn't even make sense here
17AnonymousSep 10, 2026 11:52
There's speculation that Hideo Kojima's recent public opposition to PlayStation's plan to discontinue physical discs (packaged versions), along with strategic platform differences including PC releases, may have contributed to this split and the move to Xbox.


Discontinuing discs, lol
26AnonymousSep 10, 2026 11:52
Re: #17
Oh right, he did say something about that lol
29AnonymousSep 10, 2026 11:53
Re: #17
So this is what set off the 'Cancel-happy Sony' curse? (a 5ch meme for Sony's reputation of abruptly axing projects)
34AnonymousSep 10, 2026 11:53
Well, even Death Stranding's sales numbers were kind of underwhelming
No idea what the budget was, but including PS/PC, Death Stranding 2 probably sold around 3 million

Guess they decided it wasn't worth it
90AnonymousSep 10, 2026 11:57
Re: #34
If 3 million in first-party sales is what they got, that's actually decent, but that's probably not the bar SIE was aiming for, and they likely sank a fair amount of money into it too.
MS might end up wasting a bunch of money on this too
46AnonymousSep 10, 2026 11:54
This one's on Kojima honestly
Both Sony and Kojima fans clearly wanted PHYSINT to be his first game after going independent
What was the point of making two Death Strandings, some actor's vanity project?
67AnonymousSep 10, 2026 11:56
Re: #46
Death Stranding happened because of budget reasons
There's no way you can make an AAA game on a shoestring budget
54AnonymousSep 10, 2026 11:55
Whoaaaa


@Kojima_Hideo · Hideo Kojima
As just announced in KOJIMA PRODUCTIONS' official release, in mid-June this year we suddenly received notice from SIE that the "PHYSINT" project currently in development would be cancelled. PHYSINT is a project that matters deeply to both myself and KOJIMA PRODUCTIONS, and for the past three months we have been searching relentlessly for a "new partner" so we could carry on with it no matter what. After consulting with people from many different fields and advancing negotiations, we have decided to team up once again with XBOX, a partner who shares our "vision for the future." Please don't worry — development of PHYSINT, the next-generation "espionage action" title, is continuing.
79AnonymousSep 10, 2026 11:57
Re: #54
Hell yeah
Fine by me if it's coming to Xbox
Don't need that garbage PlayStation ("kuso sute" — derogatory slang for PS)
93AnonymousSep 10, 2026 11:58
Re: #54
So this was said right around when they announced the disc discontinuation?
98AnonymousSep 10, 2026 11:59
Re: #54
Makes you wonder what Sony's 'vision for the future' even is
55AnonymousSep 10, 2026 11:55
Could this be the thing that's supposedly overshadowing the Nintendo Direct news? lol
63AnonymousSep 10, 2026 11:55
Re: #55
Guess it wasn't good news after all, lol
85AnonymousSep 10, 2026 11:57
Re: #55
Yeah, this is gonna blow up big time lol
Combined with the disc discontinuation news, there's no putting this fire out lol
115AnonymousSep 10, 2026 12:00
Re: #55
So that gut feeling turned out to be right again
56AnonymousSep 10, 2026 11:55
57AnonymousSep 10, 2026 11:55
For Microsoft, this only makes sense if they can release it on both Xbox and PS — otherwise there's no way it pays off
268AnonymousSep 10, 2026 12:12
Re: #57
Guess it's not coming to PlayStation then
68AnonymousSep 10, 2026 11:56
Given he blew way too much time and money on Metal Gear Solid V and got cut loose by Konami, this is probably the same story playing out again
Though at least I wish Konami had let him finish the game before cutting him off
69AnonymousSep 10, 2026 11:56
Why though? 'Hideo Kojima x spy game' is about as sure a bet as it gets — a project that reeks of money and was more anticipated than Death Stranding.
From what I recall, Kojima himself wasn't even that motivated at first, and only got moving after fans worldwide kept demanding a spy game from him — this was a project born out of demand.
It's strange that they'd throw away the chance to release it as an exclusive or timed exclusive.
Maybe it's a case of: they'll fund a full exclusive, but not a multiplatform release with PC/other consoles or a mere timed exclusive.
81AnonymousSep 10, 2026 11:57
Re: #69
Maybe they demanded an insane amount of money &
development basically hadn't progressed at all?
Wasn't this announced like two and a half years ago?
145AnonymousSep 10, 2026 12:02
Meanwhile, over at Xbox

161AnonymousSep 10, 2026 12:03
Wait, was Death Stranding actually a flop? lol
182AnonymousSep 10, 2026 12:05
Re: #161
Death Stranding 1 sold well, but I think Death Stranding 2 was underwhelming
Though it could still pick up sales later through discounts and the like
197AnonymousSep 10, 2026 12:06
Re: #161
Probably figured there was no return on the investment and it'd be the same story again, so they decided they couldn't keep dealing with it and cut them loose
216AnonymousSep 10, 2026 12:08
It looks way more interesting than Death Stranding no matter how you slice it, so why…
https://pbs.twimg.com/media/HR0rPeRWEAM_YA3.jpg
258AnonymousSep 10, 2026 12:11
261AnonymousSep 10, 2026 12:11
It's strange — as a game company, Xbox is supposedly in the rougher spot, yet PlayStation seems more cost-conscious than its reputation suggests
276AnonymousSep 10, 2026 12:12
Re: #261
Because their foundation is way more stable
290AnonymousSep 10, 2026 12:13
Re: #261
Before Totoki (Hiroki Totoki, Sony Group's President/COO) stepped in to cut costs, profit margins had dropped to single digits and they were nearly in the red, so it makes sense they're being strict now
266AnonymousSep 10, 2026 12:11
So this is the reason

Background and key points of this story

PHYSINT is a new spy-action title that KOJIMA PRODUCTIONS announced in partnership with SIE, and it had been anticipated as the studio’s first original blockbuster since going independent. What stands out this time is that the announcement came from PlayStation Studios’ side, prompting questions on the thread like “if they were going to cut ties, why partner up in the first place?” According to Kojima’s own posts, the cancellation notice arrived in June this year, meaning the search for a new partner was already underway during the three months before the news went public. Multiple factors are being speculated on — sluggish sales, production costs, and differing stances on discontinuing physical discs among them — but neither SIE nor KOJIMA PRODUCTIONS has stated the specific reason behind the split. Some have pointed out parallels to Kojima’s earlier split from Konami, and the episode is being read by some as a sign of shifting dynamics between major publishers and creators.

※This article is excerpted and summarized from the 5ch (Hardware/Industry (Geha)) thread “PlayStation: “After careful consideration, we’ve decided to step back from our collaboration with KOJIMA PRODUCTIONS on the PHYSINT project”“.

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