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A New Report Explains Why PlayStation Decided to Drop Hideo Kojima's PHYSINT

Here is why Sony reportedly canceled funding for Hideo Kojima's next big action-espionage title.

A stylized figure in a trench coat, shrouded in shadow, with abstract brush strokes in the background, accompanied by the text "Here Comes the Prowling."
A stylized figure in a trench coat, shrouded in shadow, with abstract brush strokes in the background, accompanied by the text "Here Comes the Prowling."
alexa author
By Alexandria LopezStaff Writer

  • Primary Subject: PHYSINT
  • Key Update: A new Bloomberg report reveals PlayStation dropped funding for Hideo Kojima's PHYSINT over budget overruns, missed deadlines, and exclusivity disputes, leading Xbox to step in as the new partner.
  • Status: Confirmed
  • Last Verified: September 11, 2026
  • Quick Answer: PlayStation reportedly canceled PHYSINT due to high budgets, missed deadlines, and exclusivity disagreements with Kojima, leading Xbox to step in and back the game.

On September 10, PlayStation shocked the gaming world by announcing that they would be pulling out of support for PHYSINT, an upcoming title from Kojima Productions.

This was later confirmed by Hideo Kojima himself, who revealed that they were forced to find another partner to collaborate with for the game. It was then revealed that Xbox would be supporting Kojima Productions in the release of PHYSINT.

Initially, PlayStation didn't provide any reasoning for their choice. However, a report has since come out that sheds some light on the situation.

PHYSINT Canceled By PlayStation Due to Budget Concerns, Missed Deadlines, and More

According to a report published on Bloomberg, PlayStation pulled the plug on PHYSINT due to budget overruns, profitability concerns, and exclusivity disputes.

A man wearing glasses and a black vest stands in front of a logo that reads "Kojima Productions."
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Credit: Sony Interactive Entertainment

Death Stranding and its sequel reportedly didn't meet PlayStation's revenue expectations. This led the company to worry about PHYSINT's commercial performance.

The report claims the new title already missed deadlines and "was on track to be well over budget despite being years away from release."

READ MORE: PlayStation's Cancellation of PHYSINT Is a Major Fumble

PlayStation was hesitant to invest hundreds of millions of dollars into a game they knew wouldn't remain exclusive to their hardware. Kojima didn't want the game to be exclusive for a long time. Similar to how Death Stranding was initially released as a PlayStation exclusive and was later released on other platforms, it seems Kojima wanted the same for PHYSINT.

A HIDEO KOJIMA GAME PHYSINT
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Credit: Kojima Productions

All of these reasons reportedly caused PlayStation to unexpectedly shut down support for the game. Back on September 10, Hideo Kojima shared a tweet on X (formerly Twitter) to say that Kojima Productions "unexpectedly received notice" that PlayStation pulled out funding for the game. Xbox later stepped in to act as the new publishing partner.

PHYSINT is an action-espionage game that Kojima has described as "the culmination of his work" after 40 years in game development. Not much is known about the game, but it's expected to come out in 2030.

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