(UPD) The reasons behind Sony giving up on PHYSINT are now known
, by Thibaut
Updated September 11, 2026 at 10:17 p.m. BST
In an article published by Forbes, we learn that Kojima Productions has reportedly also lost access to the Decima Engine, the engine used in Death Stranding. After all, it was developed by Guerrilla Games, the PlayStation studio behind the Horizon series.
Furthermore, PHYSINT is no longer expected to have access to resources from Sony Pictures and Columbia Pictures for its cinematic sequences.
Original article
A major news story almost completely overshadowed this week’s Nintendo Direct. It concerns Sony’s cancellation of PHYSINT, Hideo Kojima’s upcoming spy-action game. The project was ultimately picked up by XBOX, which will fund its development.
In a video posted on YouTube, journalist Jason Schreier shared several details about this fascinating saga. He cites sources close to PlayStation. First, the Japanese console maker was reportedly put off by the commercial performance of the two Death Stranding games. The second installment, in particular, sold less well than its predecessor.
Furthermore, PlayStation executives who supported Hideo Kojima have left the company over the past few years. The Japanese creator has thus gradually lost his supporters within the company. However, Kojima Productions is not without its own shortcomings...
PHYSINT reportedly missed several major milestones in its development, causing delays in Sony’s schedule. The company was also dissatisfied with the game’s quality at those specific stages of production. Kojima was also asking for a lot of money to bring his vision to life (several hundred million dollars), and PHYSINT wasn’t even supposed to be a permanent PlayStation exclusive. For the creator of Metal Gear, delays and budget overruns aren’t a big deal. His philosophy is that these factors always result in a critically acclaimed title. A vision that PlayStation, of course, does not share.
Now, let’s turn our attention to Sony Interactive Entertainment, which is going through a very troubled period. The component crisis (particularly the cost of RAM and storage) is heavily impacting the hardware division, prompting the company to revise its PS5 sales forecasts downward. Sony obviously wants to maximize profits and cut costs further.
As a result, since 2024, the approval process for PlayStation Studios games has become more rigorous and demanding. The company wants to avoid another Concord. In fact, this had lead to the ambitions surrounding Horizon Hunters Gathering being scaled back.
All of this has led to a complete split between Sony and Kojima Productions. Finally, XBOX plans to release PHYSINT on its consoles and on PC.
Source: forbes.com