Hideo Kojima's upcoming Xbox console-exclusive horror game, OD, is reportedly safe from the wave of studio closures, layoffs, and game cancellations reportedly affecting Microsoft's gaming division. According to IGN, a source with knowledge of Xbox's plans has confirmed that OD continues development at Kojima Productions and will still be published by Xbox.
Details about OD remain scarce, though the game was first revealed during an Xbox showcase in June 2022. It is slated to feature actors Sophia Lillis, Hunter Schafer, and the late Udo Kier. Kojima himself has stated that the concept for OD was not initially understood by many during its pitching phase, but former Xbox CEO Phil Spencer recognized its potential, leading to the partnership with Kojima Productions.
This news arrives as Xbox appears to be undergoing significant restructuring. Reports have surfaced regarding potential studio closures, sales to other companies, or the spinning off of existing studios. The development of OD's continuation comes as other projects face uncertainty. For instance, developer IO Interactive recently announced layoffs, following confirmation that Microsoft had withdrawn funding for their upcoming game, Project Fantasy. Microsoft has stated that its overall investment in games will not decrease, but rather that the company is shifting its focus and the types of projects it supports.
Concerns have also been raised about other Xbox titles, including Bethesda's Marvel's Blade, developed by Arkane. Despite positive remarks from Bethesda's Todd Howard about Arkane's work on the game, it is reportedly among those in danger of cancellation. Reports from The Verge suggest that at least five studios, including Arkane, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, may be impacted by impending mass layoffs, which are rumored to occur around July 6 and could affect a broad range of Xbox operations.