Sony's decision to end its partnership with Hideo Kojima on the upcoming game Physint was reportedly due to budget concerns and missed deadlines, according to a report from Bloomberg.
The report suggests that Sony is implementing stricter production oversight following a period of significant spending on underperforming or canceled first-party titles. This includes the costly development of the now-canceled Concord, Naughty Dog's The Last of Us Online, and the ongoing Marathon project.
Sources cited in the Bloomberg report indicate that Physint "missed deadlines and was on track to be well over budget despite being years away from release." The commercial performance of Kojima's previous titles, Death Stranding and its sequel, also reportedly factored into Sony's decision. While the first Death Stranding was profitable for Kojima Productions, its sequel has reportedly seen slower sales and less revenue compared to its predecessor.
Additional factors contributing to Sony's withdrawal include a reported shift away from releasing many single-player games on PC, which would have limited Physint's potential audience. Furthermore, the departure of Sony executives who had previously worked with Kojima over the years may have also played a role in the dissolution of their long-standing partnership.
Following Sony's exit, Microsoft acquired the rights to Physint for Xbox. This move aligns with Xbox's leadership's stated goals of expanding its entertainment offerings beyond gaming into film and television, a direction that was hinted at in the original announcement of Physint. Kojima Productions is also working on OD, another project confirmed for Xbox.
Analysts have noted that while Sony's decision may be financially understandable, it could negatively impact its standing with core gamers. Physint is described as a next-generation title, though no release window has been provided for it or for OD.