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Verified tech news, cross-checked.

  • Hideo Kojima Recounts Sony Canceling Physint in June Zoom CallGaming
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Verification
VERIFIEDConfidence: HIGH
Source identified
Claims cross-referenced
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Fact-check summary

Core story of PlayStation canceling Physint and Xbox taking over is confirmed by GameSpot, The Verge, VGC, Kotaku and multiple other outlets on Sept 9-10; Bloomberg investigation and specific sales/budget reasons not corroborated elsewhere.

1 caveat
  • ▲Specific reasons (Death Stranding sales, costs, exclusivity window) reported only by Insider Gaming and unconfirmed by other outlets or official sources.
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via Insider Gaming

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Home/Gaming/Bloomberg Report Details Why PlayStation Dropped Physint Project
VERIFIEDBy Xavier Rivera·Saturday, September 12, 2026 at 11:34 AM AST·1 min read

Bloomberg Report Details Why PlayStation Dropped Physint Project

A Bloomberg report citing anonymous sources claims that disappointing commercial performance of Kojima’s prior Death Stranding titles, missed deadlines, ballooning costs, and limited exclusivity led PlayStation to cancel Physint. Xbox will now partner with the developer on the project.

Source:Insider Gaming
Post
Bloomberg Report Details Why PlayStation Dropped Physint Project
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TL;DRAI · 60 sec read

PlayStation canceled the unannounced Physint project from Kojima Productions after disappointing sales of Death Stranding titles, spiraling costs, deadline slippages and worries over a short exclusivity window, Bloomberg reports. Microsoft now moves in to publish the game, ending the long relationship between Sony and the developer.

According to a Bloomberg investigation, disappointing sales figures, spiraling costs, deadline slippage and worries over a short exclusivity window prompted PlayStation to cancel the unannounced Kojima Productions title Physint.

The decision, first reported this week, severs a long-standing relationship between the Japanese developer and Sony, with Microsoft now moving in to publish the game instead.
Both entries in the Death Stranding series reportedly failed to hit internal revenue targets.

Physint Canceled Due to Performance, Budget and Exclusivity Concerns

Bloomberg’s story, drawn from people reportedly familiar with the matter, identifies the lukewarm commercial results of Hideo Kojima’s previous PlayStation releases as a central factor. Both entries in the Death Stranding series reportedly failed to hit internal revenue targets. Several additional issues contributed to the termination.
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The project had already missed multiple internal milestones and was projected to exceed its allocated budget substantially, despite still being years from release. Sony executives were also reportedly reluctant to commit hundreds of millions of dollars to a title that would remain an exclusive for only a limited period.
Sony executives were also reportedly reluctant to commit hundreds of millions of dollars to a title that would remain an exclusive for only a limited period.

Xbox steps in as new partner for Kojima.
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The surprise split between Hideo Kojima and PlayStation became public this week, after which Microsoft confirmed it would take over publishing duties on the project.
Why this mattersAI · ~100 words

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    Hideo Kojima Recounts Sony Canceling Physint in June Zoom Call

    Hideo Kojima revealed he learned of Sony's decision to cancel funding for Physint during a June Zoom call, leaving him in shock and immediately concerned for his studio's 200 employees and its 10th anniversary. The news comes after PlayStation publicly stepped away earlier this month and Xbox took over the project, highlighting the tough conditions across the game industry.

  • Gaming·Sep 17

    Kojima confirms Bill Skarsgård leads Physint, updates OD

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