Kojima Productions is pushing back on a report that linked Sony’s exit from PHYSINT to budget concerns, missed deadlines, and the performance of the Death Stranding series. The studio says those claims did not come from official or on-record sources and asked readers to treat them with “a dose of scepticism.”
The response does not prove that every reported detail is false. It confirms that the reason Sony stopped funding PHYSINT has not been publicly established. Hideo Kojima has said Sony delivered the decision in a June Zoom call without explaining why.
What did Kojima Productions say?
The studio described itself as healthy and profitable, said PHYSINT is moving ahead with Xbox, and added that its relationship with PlayStation remains strong. It also objected to speculation about its finances being presented as settled fact.
Sony has not issued a public explanation. Kojima has said he was shocked by the decision and initially worried about his employees and cash flow, but he also said he holds no bad feelings toward Sony.
What did the earlier report claim?
The earlier report said Sony had concerns about cost, development schedules, and the commercial performance of Kojima Productions’ recent work. Those claims shaped our first report on Sony leaving PHYSINT, but they remain reported explanations rather than reasons confirmed by Sony or Kojima.
Is PHYSINT still in development?
Yes. Xbox will publish PHYSINT under an expanded partnership with Kojima Productions. Bill Skarsgård is playing the lead, with Charlee Fraser, Don Lee, and Minami Hamabe also attached. The project has no release date.
The studio’s recent Bill Skarsgård casting reveal shows that production is continuing. Until Sony or Kojima gives a reason for the split, the budget and deadline explanation stays unconfirmed.
