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Xbox Picks Up Kojima’s PHYSINT After PlayStation Steps Away

Bloomberg reporting says Sony left because the project was over budget, behind schedule, and unlikely to remain permanently exclusive.

Overview

  • PlayStation posted that it was stepping away from PHYSINT after notifying Kojima Productions in June 2026 that it would cancel the project.
  • Xbox announced it will publish PHYSINT and said the partnership will also cover future film and television projects with Kojima Productions.
  • Kojima and his studio say development is ongoing and that they spent roughly three months searching for a new publisher before landing the Xbox deal.
  • Reporting sourced to Bloomberg says Sony’s decision was driven by rising costs, missed deadlines and reluctance to fund a title that would not stay permanently exclusive.
  • The move increases the likelihood of a PC release but platform details and any exclusivity terms have not been confirmed and could affect how Kojima funds and distributes future projects.