The gaming industry woke up to one of the most unexpected headlines this morning, centered on Physint, the new spy-themed game from Metal Gear Solid creator Hideo Kojima. Sony quietly announced it was dropping the project, and within minutes, Xbox stepped in to take over publishing duties.

How the News Broke

Around 10:30 PM ET, PlayStation’s official X account posted a brief statement: "Update from PlayStation Studios: After careful consideration, we have decided to end our collaboration with KOJIMA PRODUCTIONS on the PHYSINT project. We continue to have great admiration for Hideo Kojima’s vision for the game." Sony did not provide a reason for the decision, emphasizing that their thirty-year partnership remains "strong" and expressing interest in working together again in the future. Interestingly, this announcement was made solely via social media, with no trace on PlayStation’s official blog.

Xbox Steps In Within a Minute

Just one minute after Sony’s post, new Xbox CEO Asha Sharma announced on her account that Physint would now be published by Xbox: "PHYSINT and OD! Proud to be building both with @HIDEO_KOJIMA_EN in Japan. A huge moment for Xbox." This marks Sharma’s first major publishing deal since taking the helm.

Kojima’s Own Words

Hideo Kojima shared more details on his personal account: "As previously confirmed through our official channels, we received an unexpected notification from PlayStation Studios in mid-June this year that they would be canceling the PHYSINT project. PHYSINT is a significant project for both myself and KOJIMA PRODUCTIONS. Determined to keep the project alive, we spent the last three months tirelessly searching for a new partner." Kojima mentioned that after numerous discussions and negotiations, they found a partner in Xbox who shares a "common vision for the future."

What is Physint

Physint was first announced in January 2024 during a PlayStation State of Play broadcast, with PlayStation Studios President Hermen Hulst joining Kojima on stage. Kojima describes the game as a spiritual successor to Metal Gear; a "next-generation action-espionage game" aiming to blur the line between film and gaming. The cast includes names like Charlee Fraser, Ma Dong-Seok, and Minami Hamabe.

The Reason for Cancellation Remains Unclear

Sony has not explained the reason behind its decision, fueling speculation. Some observers point to the game’s distant release window (possibly around 2030) and the commercial performance of Death Stranding 2, which, despite critical acclaim, may have fallen short of expectations. These remain unconfirmed theories, as Sony has made no official statement.

Kojima Now Developing Two Games with Xbox

While this move is surprising, it’s not entirely out of the blue; Kojima Productions was already working with Xbox on the cloud-powered horror game OD. With Physint joining the lineup, Kojima’s next two major projects will both be developed in partnership with Microsoft—a notable shift for a developer long associated with PlayStation. According to Sharma, this collaboration extends beyond publishing into film and television as well.

Frequently Asked Questions

Why did PlayStation cancel Physint?

Sony has not given an official reason. Some speculate the long development timeline (with 2030 being mentioned) and the commercial performance of Death Stranding 2 may have played a role, but nothing has been confirmed.

Was Physint canceled or is it still in development?

The game was not canceled; only its publisher has changed. Kojima has confirmed that the project is continuing in partnership with Xbox.

How many games is Kojima now making with Xbox?

Two games: the previously announced horror project OD and now Physint, which has moved to Xbox.