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Xbox to publish Kojima’s PHYSINT after Sony exits

By Drooid · Sep 11, 2026, 10:06 PM UTC · How we work

Summary

Sony Ends PHYSINT

Sony Interactive Entertainment ended its PlayStation partnership on Hideo Kojima’s PHYSINT.
Sony cited missed development deadlines and projected budget overruns that could reach hundreds of millions of dollars.
Sony was dissatisfied that Death Stranding and Death Stranding 2 failed to meet its revenue expectations.
Xbox announced it will publish PHYSINT on Xbox consoles and PC, continuing development.
Kojima Productions received Sony’s cancellation notice in mid-June and began a three-month partner search.

Summary

Xbox Secures Physint

Xbox secured TV and film rights for Physint and another Kojima project, expanding portfolio as part of entertainment push.
The deal also includes PC publishing, giving the game broader platform reach across Windows PCs beyond consoles.
Xbox announced 3,200 layoffs and studio closures this year, making the Physint pickup a PR win amid cost-cutting.

History

Historical Context

In 2001, Microsoft acquired Bungie and launched Halo on the original Xbox, reshaping console exclusivity and prompting rival platform battles. Halo sold over 5 million copies within its first year, generating roughly $120 million revenue and proving third-party titles could drive console adoption. Today, Sony’s abrupt termination of Hideo Kojima’s PHYSINT mirrors that earlier shift, as Microsoft’s Xbox now embraces the project after Sony’s withdrawal. The pattern suggests platform owners will increasingly leverage high-profile developers to offset internal cost cuts, echoing the early-2000s strategy that expanded Xbox’s market share.

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Sony Ends PHYSINT

Sony Interactive Entertainment ended its PlayStation partnership on Hideo Kojima’s PHYSINT.
Sony cited missed development deadlines and projected budget overruns that could reach hundreds of millions of dollars.
Sony was dissatisfied that Death Stranding and Death Stranding 2 failed to meet its revenue expectations.
Xbox announced it will publish PHYSINT on Xbox consoles and PC, continuing development.
Kojima Productions received Sony’s cancellation notice in mid-June and began a three-month partner search.

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