Hideo Kojima's highly anticipated horror project, codenamed OD, will continue to be published by Xbox despite Microsoft's recent decision to withdraw from several other third-party publishing agreements. This move comes as part of a broader strategic reevaluation within Xbox's gaming division, which has seen the cancellation of multiple development and publishing commitments.
First teased three years ago, OD was initially presented as part of an ambitious slate of partner games aiming to bolster Xbox's third-party offerings. While Microsoft has since dissolved ties with some of these collaborations, sources familiar with the company's plans indicate that OD remains a secure project within their portfolio. Kojima himself described the game earlier this month, stating his ambition to surpass existing levels of 'scariness' in horror titles. He also hinted at a system designed to allow players to continue even if the game becomes too frightening, though he remained tight-lipped about further details.
Details about OD remain scarce, with little known about its gameplay or release window. The project was revealed at the 2023 Xbox Summer Showcase and later formally announced at The Game Awards that same year. It features the involvement of director and writer Jordan Peele, and its cast includes Sophia Lillis, Hunter Schafer, and the late Udo Kier. The game is being developed using Unreal Engine.
Microsoft's initial support for OD was seen as a signal of its commitment to backing unique and ambitious projects from acclaimed creators. However, the landscape has shifted significantly, particularly following the Activision Blizzard acquisition and subsequent mass layoffs at Xbox. In the past year alone, Microsoft has reportedly scaled back or canceled several other publishing arrangements.
Among these are a publishing deal with Brenda and John Romero for their new game, which was reportedly canceled last June. Game File also reported that Patrice Désilets, creator of Assassin's Creed, originally partnered with Xbox for his new action game, 1666: Amsterdam, but that collaboration ultimately fell through. More recently, Microsoft confirmed it would no longer publish IO Interactive's upcoming Project Fantasy IP, a project understood to have been scaled back even before this latest wave of cuts.
A spokesperson for Microsoft told Bloomberg that the company is not reducing its overall investment in games but is shifting its focus and the types of projects it supports. This sentiment was echoed in a memo from Xbox CEO Asha Sharma, who emphasized the need to fund industry-defining franchises while also ensuring a pipeline of new intellectual property and first- and third-party exclusives for future success. Reports suggest Sharma plans to allocate more resources to major franchises like Halo and Fallout, potentially at the expense of other portfolio investments. The ongoing restructuring may impact numerous Xbox studios and over a thousand employees.