Xbox Secures Kojima's Physint for Fraction of $400M Budget
Xbox's deal to publish Hideo Kojima's Physint costs significantly less than the rumored $400 million, with the project shifting from PlayStation after Sony
Xbox is paying only a fraction of the $400 million figure originally linked to Hideo Kojima's upcoming game, Physint. Multiple sources confirm the budget is significantly lower, marking a strategic shift for Microsoft's exclusive publishing.
Christopher Dring initially stated Xbox was "signing Kojima for a project often referred to as Physint with a budget around $400 million." He later clarified the company is likely paying quite a bit less. First-hand sources with direct knowledge of the contracts describe the figure as far lower. The $400 million may reflect what Sony was potentially liable for before cancelling its deal with Kojima Productions. No actual payment figure was disclosed.
Physint's origins and shift from PlayStation to Xbox
Physint is an action-espionage title seen as a spiritual successor to Metal Gear Solid. It was originally announced as a PlayStation project. Sony reportedly spent months negotiating before pulling funding in June. The decision came after the project exceeded its budget and missed deadlines. PlayStation declined to fund Physint due to fears it would not be a financial success. Kojima subsequently convinced Xbox to pick up the project for continued funding and publishing.
Deal includes expanded scope beyond the game itself
The agreement between Xbox and Kojima Productions covers more than just game development. It includes movie and television licensing rights for Physint. Furthermore, the deal secures improved terms for Kojima's other in-development Xbox project, the anticipated atmospheric horror game OD.
Broader context of Xbox studio restructuring
The Physint deal arrives during widespread restructuring and layoffs across Microsoft Gaming. CEO Satya Nadella recently praised Xbox's ongoing streamlining under gaming CEO Asha Sharma. This came just days after 268 layoffs were announced, associated with the impending closure of British studio Ninja Theory. Sharma is focusing on big-name franchises like Fallout and The Elder Scrolls while reducing focus on smaller projects.
Major organisational changes are underway across Microsoft's gaming division. The shifts include several studio moves and mergers.
Sharma has publicly emphasized cost-saving goals. The restructuring includes thousands of layoffs and staff reductions via divestitures. In terms of future releases, Xbox confirmed that Gears of War: E-Day and Clockwork Revolution won't come to PlayStation, while Forza Horizon 6 and Fable remain in development for PS5. When asked about announcements, Hideo Kojima was non-committal. He said, "I think all of that will be announced at a later time. I'm not sure yet, and I can't really say."
