Kojima Details Sony's Physint Cancellation and Xbox Rescue

Hideo Kojima says Sony Interactive Entertainment told him it was pulling funding for his game Physint during a June Zoom call. The news left the developer in shock, fearing for the future of his 200-person independent studio, Kojima Productions.

Kojima described the moment to IGN in his first interview since the project's dramatic shift. He brought company president Shinji Hirano and head of talent development Aki Saito to the meeting. "I was shocked and I said, 'What did you say?'" Kojima recalled. "I couldn't quite process what they had said." His immediate concern was for his staff and the stability of the studio, which operates project-by-project without corporate backing.

The Immediate Fallout

Kojima initially kept the cancellation secret from his team. He worried about having to lay off developers dedicated to Physint, a spiritual successor to Metal Gear Solid. The studio had expanded its staff specifically for that project. Financial concerns were most important, as the company had taken bank loans after the release of Death Stranding. If they find out that a project has been stopped or canceled, we'd be in big trouble, Kojima said.

The developer also had to consider the actors already scanned for the game and collaborating artists. He was determined to avoid a repeat of the high-profile cancellation of P.T., the playable teaser for the canceled Silent Hills. For Kojima, the project held deep personal significance, representing a culmination of his studio's 10th anniversary and his own 40th year in game development.

A New Pitch Strategy

Faced with the crisis, Kojima's first action was to return to his desk and add more to the Physint concept. He, Hirano, and Saito decided to seek a new partner before informing the wider staff. Kojima moved away from a traditional funding pitch. Instead, he envisioned a broader strategy.

He began approaching potential partners with a vision for a new IP that encompassed games, movies, dramas, anime, and music. I thought that the way to go was to say, 'I'm making this new IP, and I want to consider everything like movies, dramas, anime, TV, comics, music,' Kojima explained. He looked beyond the game industry to film studios and streaming companies.

Securing the Xbox Deal

Microsoft's Xbox division emerged as the ideal partner. Kojima Productions was already working with them on the game OD. Kojima stated that Xbox could provide not only funding but also key technical support, marketing, and playtesting resources. He made a formal pitch for Physint.

Their first reaction was like, 'This pitch was fantastic. Never seen a pitch like this!' Kojima told IGN. The deal was struck, turning what was once a PlayStation-exclusive project into a title that may not release on PlayStation at all.

Managing the Studio Through Crisis

Three days after the Sony meeting, Kojima informed the leaders of the Physint team about the cancellation. He assured them he would find a new partner. In the interim, he had to shrink the Physint team and move some developers to the OD project.

He feared a wave of resignations. To his surprise, when he asked the remaining Physint staff to create materials for the new pitch, they worked happily and with great motivation. I thought, wow, I have really tough people here, Kojima said. The studio subsequently issued a statement to IGN, asserting it is in a healthy, profitable state and that its relationship with PlayStation remains strong. Kojima himself expressed no bad feelings toward Sony, acknowledging it's a tough time for the industry.