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.

Nothing could’ve prepared me for their decision to step away from the project.
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Hideo Kojima confirmed Bill Skarsgård as the lead actor in Physint and said development on OD is on schedule during an Xbox Tokyo Game Show 2026 presentation on September 17. The update is the first since Xbox took over publishing both games following Sony's departure from Physint last week.
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.
Sony's September 3, 2026 State of Play confirmed multiple third-party games for Xbox consoles with firm release dates through 2027. The announcements reassure Xbox owners that the PlayStation-focused showcase still delivered relevant multiplatform news.
Microsoft has acknowledged a major Xbox Network outage preventing users from signing in, creating accounts, or launching profile-required games on PC and consoles. The disruption comes after two months without issues and follows a prior outage that lasted more than 15 hours.
Xbox CEO Asha Sharma has described Project Helix as a family of devices rather than a single next-generation console. The clarification emerged during a BBC interview at gamescom 2026 as the company prepares to send alpha versions to developers starting next year.