Physint saw its surprise split with Sony explained by Hideo Kojima, who revealed how an Xbox deal prevented studio collapse. Read on for the full breakdown.
Hideo Kojima Explains Shocking Sony Split and How Xbox Deal Prevented Studio Collapse
Secret June Cancellation Mirrored Silent Hills Fallout as Kojima Feared History Repeating Itself
Physint sent shockwaves across the gaming landscape earlier this month following the revelation that Sony Interactive Entertainment had dropped the project. Now, in an exclusive interview with The Washington Post, director Hideo Kojima has broken his silence on the split, revealing that the sudden cancellation occurred during a mid-June Zoom meeting and left executives terrified that the independent studio could go under.
"We're an independent studio. That means if they can't fund us, our studio could collapse," Kojima explained. Following the meeting, studio president Shinji Hirano recalled being completely stunned: "I just went totally blank when they told me. The biggest surprise was Hideo's actions after that. He went back to his room and started working."
For Kojima, the sudden withdrawal brought back painful memories of 2015, when Konami famously canceled Silent Hills following the viral release of P.T. Having already recruited and negotiated with high-profile Hollywood collaborators, Kojima refused to let history repeat itself.
"The cast I already talked to and negotiated with, other artists and collaborators who were all happy to do it ... I can't tell them this is canceled, especially after what we went through with 'PT,'" Kojima said. "I didn't want to go back and do it again and say to the actors this is canceled."
Despite having already hired staff specifically to build Physint, Kojima confirmed that no employees were laid off. Instead, team members were swiftly reassigned to OD, the studio's upcoming Xbox-published horror game co-written with filmmaker Jordan Peele, while a smaller core unit continued advancing Physint. Kojima confirmed that the game's concept and plot are completed with storyboards, and the team has begun creating 3D character models and scanning actors—including newly confirmed star Bill Skarsgård.
Kojima Studio Rebuffs Rumors and Defends Indie Model
Following the announcement that Xbox stepped in to publish the espionage title, Kojima Productions issued an official statement on X to shut down viral speculation surrounding the split. The studio directly challenged an earlier report from Bloomberg, which claimed the partnership ended due to budget concerns, missed milestones, and Death Stranding falling short of revenue targets.
In the statement, Kojima Productions rejected the rumors as "unsubstantiated speculation," emphasizing that false claims regarding its PlayStation partnership and Death Stranding revenue had unfairly "touched our fans, out creative partners and colleagues." Urging the community to treat anonymous reports with skepticism, the studio reaffirmed that it remains in a "healthy, profitable state" as development continues alongside Microsoft.
Speaking with The Washington Post, Kojima clarified that Sony never provided a specific reason for pulling funding, but maintained that his personal relationship with the company remains positive: "Corporations are like living things. I still have this relationship with Sony. I use Sony cameras, Walkman still. We're not in a dispute. We're not fighting with them."
For Kojima, keeping the project alive was crucial for the broader independent development ecosystem. "So many people who went independent and made a new studio have struggled to become really successful," Kojima stated. "If my studio closes as well, that's all the more reason for people to not go to independent studios anymore. I wanted to stand firm for indies, so I needed to find a new partner."
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Source:
The Washington Post Official Interview
Kojima Productions Official Statement on X
