Kojima Productions has responded to reports surrounding Sony’s decision to withdraw from PHYSINT, urging readers to treat claims about the circumstances with “a dose of scepticism.” The studio said speculation concerning its relationship with PlayStation, the commercial performance of the Death Stranding franchise and PHYSINT’s production and investment had spread far enough that it felt compelled to address the situation publicly. It also stressed that the company remains profitable, PHYSINT is continuing under Xbox and its relationship with PlayStation remains strong.
The statement follows a Bloomberg report from Jason Schreier examining why PlayStation stopped publishing Hideo Kojima’s upcoming action-espionage game. Bloomberg reported, citing people familiar with the project, that Sony’s decision involved concerns around PHYSINT’s budget, profitability and development schedule. Kojima Productions did not individually deny each of those reported details, but emphasized that none of the claims cited in that reporting came from an official or on-the-record source.
According to the studio, it would not ordinarily respond to what it described as unsubstantiated speculation, but the discussion had begun affecting fans, creative partners and colleagues with whom Kojima Productions has worked for decades. The company acknowledged that Sony’s withdrawal was a serious situation with potentially significant consequences, while seeking to reassure players about its present condition. In particular, Kojima Productions said it is currently in a healthy and profitable state rather than facing the financial instability some interpretations of the situation had suggested.
Sony’s exit from PHYSINT became public earlier this month after the companies revealed that Xbox would take over as the game’s publishing partner. Hideo Kojima said at the time that Kojima Productions unexpectedly received notice from PlayStation Studios in mid-June that Sony intended to cancel its involvement with the project. The developer then spent roughly three months looking for another partner before reaching an agreement with Microsoft, which was already working with Kojima Productions on OD.
Xbox formally announced the expanded partnership on September 9. Microsoft said the agreement extends its relationship with Kojima Productions beyond OD, while Kojima described Xbox as a partner that shares the studio’s vision for PHYSINT. The collaboration is also expected to extend into film and television projects, although neither company has provided specific details about those efforts.
PHYSINT itself remains in active development despite the publisher change. Kojima Productions recently confirmed Bill Skarsgård as PHYSINT’s lead actor, alongside new promotional artwork featuring Skarsgård and Charlee Fraser. Kojima said costume fittings, scans and camera tests with the actors had already taken place, indicating that production work continued around the period in which the studio was dealing with Sony’s departure and searching for another publisher.
The new statement is also notable for what it does not claim. Kojima Productions does not say that every element of Bloomberg’s reporting is false, nor does it provide an alternative explanation for why Sony chose to step away. Instead, the studio challenges the sourcing and broader narrative surrounding those claims while putting several points on the record about its finances, PHYSINT’s development and its continuing relationship with PlayStation.
Sony similarly said when announcing its departure that its relationship with Kojima Productions remained strong and expressed continued admiration for Kojima’s work. The companies have collaborated for decades, including on Death Stranding and Death Stranding 2, making the decision to separate on PHYSINT particularly notable. For now, however, both sides are publicly maintaining that their broader relationship remains intact, while PHYSINT proceeds under Xbox with no release date yet announced.
