Sony reportedly cut off Hideo Kojima’s Physint for deadline and budget concerns. People close to the project say missed deadlines and mounting losses were behind the decision, even though Kojima has said the game won’t ship for another five or six years.
The move comes as PlayStation doubles down on multiplayer and services. The company is standing by its decision not to release single-player games on PC, which means Physint would be out of the profit loop if it ever reached that platform. Xbox, by contrast, is in the PC business and plans to publish Physint on PC and console, according to insiders. Kojima no doubt found that attractive when choosing his next publishing partner.
Deadline Trouble
People close to the project say Physint is already heading into the red. Missed deadlines were another factor in Sony’s decision not to fund the game. Bloomberg reports that insiders claim Kojima’s previous Sony console exclusives, Death Stranding and Death Stranding 2: On The Beach, “didn’t meet PlayStation’s revenue expectations.”
The game was reportedly supposed to drop in about five years. Now it doesn’t have a publisher.
Why PC Is Off the Table
PlayStation’s refusal to release single-player games on PC is a big part of the story. If Physint had a PC release, PlayStation would be out of the profit loop entirely. Xbox, which is in the PC business, is planning to publish Physint on PC and console.
Kojima’s decision to go with Xbox makes sense in that context. He gets a publisher willing to put the game on PC, something PlayStation would not do.
The Profit Motive
Profitability was another factor in Sony’s decision. People close to the project say the game was already losing money, and the company was not willing to keep funding a project that was not meeting its goals.
This is a surprising wrinkle if true, given Kojima’s public statements about the game’s timeline. He has said Physint isn’t expected to drop for another “5 to 6” years.
PlayStation’s Broader Problems
Sony is at a crossroads. The company faces an “AI-driven memory crunch” that is contributing to supply shortages and rising hardware prices, which is “driving the company to look for more ways to maximize profits and generate more revenue per user,” per Bloomberg.
That pressure is part of the backdrop for this decision. Sony has also struggled with several high-profile endeavors that never made it to market, including the canceled The Last Of Us Online and a live-service God Of War project.
The Firewalk Bomb
One of those failures hit particularly hard. Concord, the live-service shooter whose development spanned Sony’s acquisition of creator Firewalk Studios in 2023, eventually bombed so badly that Firewalk no longer exists.
The studio that created the game is gone. The project that failed was a live-service shooter, and the outcome was severe enough that the studio could not continue.
What This Means for Kojima
Kojima is now working with Xbox instead of Sony. The game will be published on PC and console by Xbox, which means it will reach audiences PlayStation would not have touched.
For Kojima, this is a practical choice. Xbox is willing to publish on PC, and the partnership gives him a publisher that fits the project’s needs.
The Wake-Up Call
Perhaps this split with Kojima is the wake-up call Sony needs to finally start working on itself. Pain is a necessary part of growth, after all.
Sony has been making unpopular decisions lately. Its recent decision to stop producing new PlayStation game discs beginning in 2028 was very unpopular. Sony has since stated that existing titles will still be available for reorder, at least for now.
The company has also struggled to get several high-profile endeavors off the ground. The canceled The Last Of Us Online and the live-service God Of War project are part of that record.
The Timeline So Far
| Event | Date |
|---|---|
| Sony cuts funding for Physint | Reported now |
| Physint expected to drop | “5 to 6” years from now |
| PlayStation stops new game disc production | Beginning 2028 |
| Firewalk Studios acquired | 2023 |
| Concord bombs, Firewalk closes | Reported |
Our View
Sony cut off Kojima’s Physint because the game was missing deadlines and losing money. PlayStation’s refusal to release single-player games on PC pushed the project toward Xbox, which is planning to publish it on PC and console.
This is a wake-up call for Sony. The company has been making unpopular decisions, and this one adds to the record. The Firewalk closure shows what happens when a project fails badly enough to kill a studio.
Kojima is moving forward with Xbox. The game will be published on PC and console, and he has a partner who understands single-player games.
The split with Kojima is a symptom of PlayStation’s broader problems. The company is looking for ways to maximize profits, and that means cutting projects that are not meeting expectations. Physint was one of them.
Sony has a lot of work to do. The company needs to fix its supply chain issues and find a way to make its games profitable again. This decision shows the pressure is real.
Kojima is not staying put. He is going off gallivanting with Xbox to do whatever makes him happy. Sony will have to learn to live without him.
See the video the story is built around at The A.V. Club.
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