Hideo Kojima’s PHYSINT was unveiled as a major PlayStation collaboration in 2024. It marked the Metal Gear creator’s long-awaited return to the action-espionage genre.
But the partnership has now changed dramatically. Kojima said PlayStation Studios unexpectedly notified his team in mid-June 2026 that it would cancel the project. Xbox has since agreed to publish PHYSINT and expanded its partnership with Kojima Productions.
The reversal moves one of PlayStation’s most intriguing future projects into Xbox’s publishing line-up after more than two and a half years of public association with Sony.
Kojima said his studio spent roughly three months looking for a new partner after receiving the notice from PlayStation Studios. Xbox ultimately stepped in, while Kojima Productions continued developing the game.
PHYSINT started as a major PlayStation collaboration
PHYSINT was first announced during PlayStation’s State of Play presentation on 31 January 2024.
Kojima described it as a brand-new action-espionage game being created in partnership with Sony Interactive Entertainment. Production was expected to begin in earnest after Death Stranding 2.
The partnership carried particular weight because of Kojima’s long history with Sony and the action-espionage genre he helped popularise through Metal Gear.
Kojima said in 2024 that he and Sony had almost 30 years of experience growing the espionage genre together. He also said the project would combine cutting-edge technology with talent from around the world.
PHYSINT was pitched as more than a conventional game. Kojima said it would blur the boundaries between video games and films through its visuals, story, performances and presentation.
That made PlayStation’s withdrawal particularly notable.
Sony has not publicly given a detailed reason for ending the collaboration. PlayStation Studios said it made the decision after ‘careful consideration’ and stressed that its wider relationship with Kojima Productions remained strong.
That distinction is important. PlayStation has stepped away from PHYSINT, but neither company has announced an end to their broader relationship.
Xbox steps in after three-month search
Kojima said his studio was unexpectedly informed in mid-June that PlayStation Studios intended to cancel PHYSINT.
He described the game as important to both himself and Kojima Productions. The studio was determined to keep development moving.
That led to a three-month search for another partner. Kojima said the studio sought advice and held negotiations across several fields before finding in Xbox a company that shared its vision for the future.
The move builds on an existing relationship.
Xbox Game Studios and Kojima Productions first announced a partnership in 2022 to create a game using Xbox cloud technology. That project was later revealed as OD, Kojima’s experimental horror title, at The Game Awards in 2023.
PHYSINT takes that partnership considerably further.
Xbox CEO Asha Sharma said the company was honoured that Kojima had chosen Xbox to work with Kojima Productions on PHYSINT.
Kojima said the two sides shared a common vision for the future. He also confirmed that development would continue as Kojima Productions works to ‘redefine’ the action-espionage genre.
Kojima-Xbox partnership grows beyond PHYSINT
The agreement extends beyond a single publishing deal.
Xbox has confirmed that its relationship with Kojima Productions will expand beyond OD and PHYSINT into film and television.
That does not mean a PHYSINT film or television adaptation has been announced. Xbox and Kojima Productions instead said they plan to collaborate on new stories across those formats.
Several major questions about PHYSINT also remain unanswered.
Xbox and Kojima Productions have not announced the game’s release platforms. It is therefore unclear whether PHYSINT will be exclusive to Xbox consoles or whether it will launch through Game Pass.
There is no release date either.
In May 2025, Kojima estimated that PHYSINT was another five or six years away. At the time, that pointed to roughly 2030 or 2031.
However, that was an estimate rather than an official release window. It also came before the change in publishing partner.
What is clear is that PHYSINT has survived PlayStation’s decision to step away.
More than two and a half years after PlayStation helped reveal Kojima’s return to the espionage genre, Xbox is now the company publishing it.
Written by: Liam Hisona
Published: September 12, 2026
