Kojima Productions issued a public statement addressing recent Bloomberg reporting regarding its upcoming espionage project PHYSINT, denying claims of budget overruns, missed deadlines, and strained relations with Sony Interactive Entertainment. According to a statement posted by Kojima Productions on social media, the studio described the claims as unfounded speculation that has impacted fans, creative partners, and colleagues.
Kojima Productions Denies Bloomberg Report on Physint Development
The Bloomberg report previously stated that Death Stranding and Death Stranding 2: On the Beach failed to meet revenue expectations, according to sources. The report also alleged that PHYSINT missed development milestones, faced budget overruns years ahead of its release, and that Sony Interactive Entertainment hesitated to invest hundreds of millions of dollars in a non-exclusive title. Kojima Productions responded by stating that none of the claims originated from official or registered sources, urging the public to view the reports with skepticism. According to the studio’s official statement, Kojima Productions remains in a healthy and profitable financial position, development on PHYSINT is moving forward with Xbox, and its relationship with PlayStation remains strong.
Zoom Call Reveals Sony Halted Physint Funding
The partnership shift for PHYSINT followed a video call in mid-June where Sony informed Kojima Productions that it would halt funding for the project, as reported by The Washington Post. Studio president Shinji Hirano and director Hideo Kojima received the news during the Zoom meeting. According to Hideo Kojima in an interview with The Washington Post, Sony provided no reason for the cancellation, and the studio received no prior warning during development despite having agreed with Sony Interactive Entertainment to build the project together. Kojima noted that former PlayStation executive Jim Ryan had already retired prior to the decision. Reflecting on the meeting, Kojima stated that as an independent studio, the sudden removal of funding could threaten bankruptcy, leaving him initially unable to share the news with his team.
https://x.com/KojiPro2015_EN/status/2101631479704883571
Shifting to Xbox and Protecting the Team
Following the funding halt, Kojima reviewed the game concept and gathered team leaders to announce his intention to keep the project alive by finding a new publisher. According to The Washington Post, Kojima feared losing employees during the transition, comparing the uncertainty to a sinking ship and recalling his past experiences at Konami. Despite the disruption, PHYSINT ultimately secured a new publishing partnership with Microsoft’s Xbox division. Kojima expressed deep confidence in the title, telling The Washington Post that PHYSINT represents the best-selling title he could create, and admitted he never expected the project to face cancellation.
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Frequently Asked Questions
What did the Bloomberg report claim about Kojima Productions?
According to Bloomberg sources, previous titles Death Stranding and Death Stranding 2: On the Beach missed revenue expectations, while PHYSINT faced budget overruns and missed deadlines.
How did Kojima Productions respond to the report?
Kojima Productions released a statement calling the claims unfounded speculation, asserting that the studio is profitable, that its relationship with PlayStation remains strong, and that PHYSINT development continues with Xbox.
Who is publishing PHYSINT now?
After Sony halted funding for the project, PHYSINT secured a new publishing partnership with Microsoft’s Xbox division, according to interviews with Hideo Kojima published by The Washington Post.
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