PlayStation has canceled its upcoming Hideo Kojima game, Physint, a decision that has led the acclaimed game director to partner with Xbox for the project. A new report from Bloomberg, citing sources familiar with the matter, suggests that financial considerations and underperformance of previous Kojima titles were key factors in PlayStation's decision.
Physint, announced earlier this year as an action-espionage title and considered a spiritual successor to the Metal Gear series, was reportedly already exceeding its budget despite being years from release. The game had also missed development deadlines. These internal issues, combined with PlayStation's reluctance to invest hundreds of millions of dollars into a title that would not remain a permanent exclusive, contributed to the cancellation, according to the report.
PlayStation's strategy has shifted away from funding single-player games that are destined for other platforms. This stance would limit Sony's revenue potential if Kojima Productions were to publish Physint on PC or other consoles itself or with a different publisher, a scenario that occurred with Death Stranding.
The commercial performance of Kojima's previous titles with PlayStation, Death Stranding and the upcoming Death Stranding 2: On the Beach, reportedly did not meet Sony's expectations. Death Stranding 2 has sold an estimated 2.5 million copies, with the majority on PlayStation 5 and a portion on Steam. The original Death Stranding sold 5 million copies in a comparable period and reached 19 million players over five years, though its availability extended to PC, Xbox Game Pass, and a giveaway on the Epic Games Store. Alinea Analytics estimates the combined revenue for both Death Stranding games at approximately $413 million against combined budgets ranging from $250 to $300 million.
This financial scrutiny follows a pattern at PlayStation, which has seen failures in its live-service game initiatives, prompting stricter production milestones. The cancellation of Physint aligns with Sony's apparent tightening of purse strings on expensive projects that do not guarantee exclusive, high returns.
Despite the setback with PlayStation, Kojima Productions has found a new partner in Xbox. The studio is already collaborating with Xbox on the upcoming horror title OD. Xbox CEO Asha Sharma expressed enthusiasm for the partnership, stating, "We’re honored that Kojima-san has chosen XBOX to work with KOJIMA PRODUCTIONS on PHYSINT. His ambition to challenge conventions reflects the kind of creativity we want to support at XBOX."
Kojima and PlayStation share a long history, dating back to the release of Metal Gear Solid in 1998. However, the report notes that many of the PlayStation executives who had close personal relationships with Kojima have departed the company in recent years, potentially impacting the long-standing partnership.