Hideo Kojima's upcoming horror title, OD, is reportedly safe from Microsoft's ongoing business "reset" and will continue development with Xbox publishing, according to sources familiar with the company's plans. This news comes as Microsoft reassesses its video game investments, a move that has led to significant shifts within the Xbox division.
Microsoft has stated that it is "taking a fresh look at where we invest so we’re focusing on our highest priorities." The company clarified that this recalibration does not signify a reduction in overall game investment, but rather a change in the types of projects being backed and the distribution of funds. It is expected that roughly the same amount will be invested in content as in the previous year.
The "reset" has reportedly placed five internal Xbox studios at risk of closure. These include Arkane Lyon, developer of Marvel's Blade; Double Fine, known for Psychonauts; Ninja Theory, the studio behind Hellblade; Compulsion, creator of South of Midnight; and Undead Labs, responsible for State of Decay 3. Leadership at these studios is understood to be actively pursuing options to secure their futures, potentially through studio sales or management buyouts.
Adding to the uncertainty, IO Interactive, developer of 007 First Light, announced layoffs following the withdrawal of funding from a fantasy game project, which was reportedly being financed by Xbox. This situation highlights the impact of Microsoft's strategic review on external partnerships and ongoing development.
Despite the broader reassessment, OD, a collaboration between Kojima Productions and Xbox Game Studios, appears to be insulated. The game, which features director Jordan Peele's involvement, remains largely mysterious. Early plans indicated a cast including Sophia Lillis, Hunter Schafer, and the late Udo Kier. While a scan of Kier was completed, a full shoot did not materialize before his passing.
Kojima has previously described OD as a project unlike anything seen before, featuring a new game system. He recounted pitching the concept to numerous companies, many of whom deemed it too unconventional. However, former Xbox boss Phil Spencer was receptive to the idea, and his successor, Sarah Bond, has expressed continued enthusiasm for the project, viewing it as representative of Xbox's commitment to fostering diverse and innovative gaming experiences.