Kojima Clarifies Physint Early Tech Stage & Exclusivity Plan

The Kojima Productions spy thriller is moving ahead after Sony dropped funding, with XBOX stepping in and reshaping the project around a broader entertainment vision.

News by Adeela Tas on  Sep 28, 2026

Hideo Kojima has given a much clearer account of what happened to Physint, explaining that Sony stopped funding the project in June and left Kojima Productions searching for a new partner. The developer says the decision came as a shock, especially because the game was tied closely to his studio's 10th anniversary and his 40th year in game development.

For you, the biggest takeaway is that Physint was never as far along as some discussions online made it sound. Kojima explained that the project was still in a small experimental phase, with concept work, casting, actor scans, story development, technology testing, and other foundational work continuing.

Physint characters staring in dramatic profile

The full development team had not yet been assembled.

This became a major concern when Sony pulled out. Kojima Productions operates independently and funds itself project by project rather than relying on a corporate parent. Kojima said losing the contract created an immediate cash-flow problem because his studio had expanded to support two projects, Physint and OD.

He worried that losing one could force him to cut staff and put the entire company at risk. The studio has around 200 employees, and Kojima said protecting them became his priority. Some had left major companies to join Kojima Productions, while the studio had already started casting and scanning performers for Physint.

He didn't want to repeat the uncertainty surrounding P.T., so he initially kept the situation to himself and two senior colleagues while they worked out a new direction. Instead of simply asking another platform holder to replace Sony's funding, Kojima began thinking about Physint as a broader intellectual property.

He wanted a partner interested not only in a game, but also in movies, television, anime, comics, music, and other forms of entertainment. His approach was shaped by the idea that these industries are increasingly connected through digital production. That search eventually brought him to XBOX.

Kojima already had an existing relationship with Microsoft through OD, which made the transition easier.

He pitched Physint as a new IP with a broader entertainment strategy behind it, and said XBOX's initial reaction was extremely positive. The company could also provide technical support, which became another important part of the discussion.

Kojima told his Physint team about the situation three days after meeting with the company. He reassured them that he intended to find another partner, although the cancellation still meant reducing the project's team and moving some employees onto OD. Rather than losing motivation, the remaining staff immediately began preparing new pitch material.

 Hideo Kojima posing alongside prominent executives from Xbox Game Studios OD

Kojima said he was relieved to see them working enthusiastically despite the uncertainty. That also explains why Physint did not completely stop. Kojima said he continues to work on the concept every day, including the world, game systems, scenario, visuals, design, modeling, and casting. A relatively small group is still developing the project, while much of the staff is currently supporting OD.

The development process is also deliberately experimental. Kojima said enemy AI and other technologies are still being tested, and the results of those experiments can influence the story. Animation and performance capture are not yet at the stage where the full production team would be required. Because of that, he does not view the Sony decision as creating a major delay at this stage.

The engine also has not been finalized.

Kojima did not confirm whether Physint will use Decima, the technology associated with Death Stranding and Horizon. Instead, he said Microsoft's technical resources have opened up possibilities he wants to explore. He described seeing advanced research and technology during visits to Microsoft and said he wants to use whatever tools can benefit the project.

For you, that means the most concrete changes are happening behind the scenes rather than in public gameplay reveals. There is no finished build being described here, and there is no confirmed release window. The project is still being shaped around technology, casting, and the larger IP plan.

That makes the next stage less about waiting for a launch date and more about watching which pieces of the original concept survive the transition to a new partner. The platform question remains unresolved. Kojima did not confirm that Physint will be an XBOX exclusive, saying the decision ultimately belongs to XBOX.

He also pointed to the company's stated interest in reaching players across different platforms. That leaves the game's eventual release strategy unclear for now. Kojima also addressed his relationship with Sony, making it clear that he does not consider the situation a dispute. He said he has worked with Sony for roughly 30 years and still has no bad feelings toward the company.

Sony Herman Hulst and Hideo Kojima original announcement of Physint

At the same time, he admitted that he would have preferred more notice and an explanation before the funding was ended.

According to Kojima, Sony has not contacted him again since the June meeting, and he did not receive a detailed reason for the decision. He said his immediate concern was not anger but figuring out how to keep his company operating. That helps explain why the next step was finding another partner rather than publicly escalating the disagreement.

The situation has also pushed back against claims that Physint was already a huge production consuming a massive budget. Kojima's description suggests the game remained relatively early in development, with a small core team working on experimental elements. Casting had begun, but major production areas such as full animation and performance capture were still ahead.

Kojima Productions has also pushed back on suggestions that the studio is simply struggling to make money, although the full financial picture is not public. Kojima said nobody from the Physint team left after the cancellation, and the studio continued moving people between projects as needed.

The project's future now depends on Kojima’s determination to finish it. He described Physint as especially important because it represents both the 10th anniversary of his studio and four decades of his career. He also said that after being unwell during the pandemic, he had thought seriously about how much time remained in his career and wanted to put everything into the project.

That personal importance is part of why the cancellation did not end the game.

Rather than abandoning the concept, Kojima immediately returned to his desk and expanded it. He then began looking for a partner who could support the wider vision instead of simply replacing the previous funding arrangement.

The long-term plan could go beyond the game itself. Kojima said he wants a live-action Physint movie and hopes to shorten the usual gap between a game and its adaptation. He believes modern digital production can allow game and film assets to be developed together, similar to the broader plans surrounding Death Stranding.

XBOX CEO Asha Sharma’s high-profile visit to Kojima Productions

The change also gives the project a different kind of runway. Kojima is no longer working from the original arrangement, and the new partnership appears to give him room to test ideas before committing to a larger production.

That matters because his comments make it clear that several major decisions remain open, including the technology, the final team size, and how the project could connect with other media. The next phase is therefore about building the foundation rather than rushing toward a release.

For now, the clearest picture is that the game remains alive, but it is being rebuilt around a new partnership and a still-developing technical foundation.

Kojima is continuing concept work, casting and experimentation while most of the studio focuses on OD. XBOX has stepped into the role Sony left behind, while the eventual platform lineup and engine remain undecided. The project has therefore moved from a PlayStation-backed concept into a new phase at Kojima Productions.

Its direction is broader than a traditional console exclusive, at least in Kojima's stated vision, and its development is still early enough for major elements to change. What hasn't changed is Kojima's determination to finish the game and expand it into something larger than a single game.

Adeela Tas

Editor, NoobFeed

Related News

No Data.