adminPhysint is still moving forward, although its funding plans changed after PlayStation Studios notified Kojima Productions that it would stop financing the project. Hideo Kojima said he had not expected the game to be considered for cancellation, describing it as a major commercial opportunity for the studio. Here is what is known about the funding change, the project’s status and Kojima Productions’ response to reports about its finances.
Image credit: Xbox
Why Kojima was surprised about Physint
Kojima told The Washington Post that he did not understand why Physint might be at risk. He believed the project was the result of an agreement to work with Sony Interactive Entertainment, even though former PlayStation chief Jim Ryan had already retired. The funding decision therefore came as a shock, and Kojima said he had to consider what the change would mean for the studio and its staff.
On September 10, Kojima said his studio had received unexpected notice from PlayStation Studios in mid-June that funding for Physint would end. He explained that independent studios can face serious financial pressure when a partner withdraws support. At the time, he said he had not told staff about the situation.
Why it matters: Changes to project funding can affect a studio’s plans even when development does not stop immediately. For readers following Physint, the key distinction is that the funding arrangement changed, while Kojima Productions says the game remains in development.
Physint continues with a new partner
Kojima Productions found a new partner in Xbox, which is also producing the studio’s upcoming horror game, OD. Kojima said no employees were laid off because of the funding change. Staff were reassigned to work on OD, while a smaller team continued working on Physint.
Kojima Productions later said the studio was in a healthy, profitable state and that development on Physint was continuing with Xbox. It also stated that its relationship with PlayStation remained strong. Kojima described the situation as a business change rather than a dispute, emphasizing that the companies were not in conflict.
What to watch: The studio’s statements indicate that work continues, but they do not provide a release date. Until a launch window is announced, development updates are a more reliable guide to the game’s progress than speculation about timing.
Reports about budgets and deadlines
Kojima said Sony did not give him a reason for ending its funding. A Bloomberg report, citing sources, said Physint had missed deadlines and was projected to exceed its budget despite being years away from release. The report also said Death Stranding and its sequel had not reached revenue expectations.
Kojima Productions disputed the sourcing of those claims, saying they did not come from official or on-the-record sources and advising readers to treat them cautiously. The studio acknowledged that the situation had serious potential implications, while maintaining that it was financially healthy and that Physint was progressing.
These accounts should be kept distinct: the budget and deadline details were reported by Bloomberg, while the studio challenged the basis of those claims. Neither account changes the studio’s stated position that work on the game continues.
What is known about Physint’s development?
Kojima said the game’s plot and overall concept have been completed. The studio has begun creating 3D models of its actors and is testing different game engines. He also said that he had already spoken with cast members, artists and collaborators about the project.
Those steps point to ongoing preparation, but they do not establish how close the game is to completion. Kojima referred to the difficulties of cancelling a project after collaborators had agreed to take part, including his experience with PT. For now, there is no release date in the information provided.
Physint’s future
Physint faced a significant funding change, but Kojima Productions says development has not been cancelled and that a smaller team is continuing the work with Xbox. Kojima has also said the studio remains on good terms with Sony. For the clearest picture of Physint’s future, look for official announcements about development progress, partners and a release window rather than treating unconfirmed reports as settled facts.
