PlayStation reportedly dropped Kojima’s PHYSINT over budget and deadline concerns

PlayStation reportedly dropped Kojima’s PHYSINT after game went over budget and missed development deadlines

PlayStation reportedly ended its publishing partnership with Hideo Kojima’s PHYSINT after the action-espionage game went over budget and fell behind schedule, according to Bloomberg reporter Jason Schreier.

Kojima confirmed in June that PlayStation Studios had cancelled its involvement with PHYSINT, prompting Kojima Productions to seek a new partner.

Xbox subsequently agreed to publish the game, expanding its relationship with the studio beyond OD.

According to Schreier’s reporting, PHYSINT had exceeded its budget and missed deadlines years before its planned release.

The report said PlayStation executives became unwilling to continue funding the project while it was already struggling to meet its development schedule.

The reported decision ended a long-running relationship between Kojima and PlayStation that dates back to Metal Gear Solid. Kojima Productions also previously worked with Sony on Death Stranding and Death Stranding 2.

The supplied report said Sony had also become concerned about the commercial performance of the Death Stranding games and the potential cost of continuing to fund PHYSINT.

Both Death Stranding titles were eventually released on PC and other platforms, raising questions over the value of maintaining PlayStation exclusivity.

Xbox has now taken over the publishing partnership for PHYSINT. The new agreement also expands the companies’ collaboration into film and television, alongside the previously announced OD, Kojima Productions’ horror game being developed with filmmaker Jordan Peele.

An Xbox spokesperson said: “Betting on Kojima-san is an easy call.”

Kojima previously said the cancellation had prompted a search for a new partner to keep PHYSINT in development.

He described the project as important to both himself and Kojima Productions and confirmed that development would continue.