Kojima's Physint Budget Reportedly Lower with Xbox Than Originally Planned at PlayStation

Industry insiders suggest Microsoft's deal with Kojima Productions is less lucrative than Sony's initial commitment.

Sep 28, 2026
Industry & Business
Kojima's Physint Budget Reportedly Lower with Xbox Than Originally Planned at PlayStation

Hideo Kojima's upcoming stealth-action title, Physint, has reportedly secured a publishing deal with Xbox that offers a significantly smaller budget than what was initially allocated by PlayStation. Sources within the industry and in Tokyo indicate that while the game still involves considerable investment, the financial terms with Microsoft are less substantial than the original PlayStation agreement.

Physint, which was originally planned as a PlayStation exclusive, saw the project shift to Xbox after Sony reportedly cancelled the deal. The game is confirmed to feature actor Bill Skarsgård in a lead role and Kojima Productions' long-time art director Yoji Shinkawa is also involved in character design. Despite the high-profile talent, the financial specifics of the Xbox deal have been the subject of much speculation.

Initial reports suggested budgets ranging from $300 million to $600 million, with $400 million frequently cited in Tokyo's industry circles. However, multiple sources close to the situation have cast doubt on these figures. Christopher Dring, editor-in-chief of The Game Business, noted the prevalence of the $400 million figure but stated he was unsure if Xbox was paying that amount. He also mentioned rumors of a third Kojima project, though he expressed skepticism.

Bloomberg reporter Jason Schreier, while hesitant to provide exact figures without direct corroboration, stated that an Xbox source indicated the deal was for "significantly less than [$400 million]." Schreier elaborated that there are multiple budget figures in play, including the original PlayStation allocation, revised figures during negotiations, costs associated with attached A-list actors, the amount Xbox agreed to, and the final cost upon release.

Jez Corden of Windows Central further refuted the $400 million figure, suggesting it might represent what Sony was committed to before cancelling the project. Corden's sources indicate that Xbox's deal with Kojima Productions is for a "fraction" of the reported amount. This deal reportedly includes movie and TV licensing rights for Physint, as well as enhanced terms for OD, Kojima's atmospheric horror game also in development for Xbox.

These reports suggest a notable decrease in the budget compared to the original PlayStation plan. For context, Death Stranding 2 was rumored to have a budget between $150-200 million, and Insomniac's Spider-Man 2 reportedly cost $300 million. The shift in publisher and reported budget constraints raise questions about the game's development trajectory and the working conditions at Kojima Productions.

Xbox's acquisition of Physint can be seen as a public relations win amid recent layoffs and studio restructuring. However, the company's own financial challenges may have incentivized securing the deal at a lower cost. The circumstances surrounding Sony's withdrawal from the project remain debated, with Kojima himself expressing shock at the decision while some reports suggest months of prior negotiation. Regardless, it is suggested that Kojima Productions may have entered negotiations with Microsoft from a position of reduced leverage, with the studio's future and employees' livelihoods potentially at stake. These factors, combined with the reported budget constraints, could impact the development of the game.

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