Bloomberg reports PlayStation withdrew from Hideo Kojima’s PHYSINT

“PlayStation Ditched Hideo Kojima’s ‘Physint’ on Budget Concerns, Missed Deadlines”

Jason Schreier of Bloomberg reports Sony dropped PHYSINT over a variety of issues surrounding its release which put the project into turmoil.

The main reasons were:

• Sony Group Corp.’s PlayStation pulled out of an upcoming game by Hideo Kojima due to concerns over budget, potential profitability and exclusivity.
• The decision was influenced by the commercial performance of Kojima’s previous games, Death Stranding and its sequel, which didn’t meet PlayStation’s revenue expectations.
• Kojima’s studio, Kojima Productions, will now publish the game, Physint, with Microsoft Corp.’s Xbox, which plans to collaborate with Kojima Productions on films and television beyond games.

Additional context

I’d like to share some broader points and reiterate a few I’ve already made, based on other reports I’ve seen. These are worth keeping in mind.

• Sony had concerns about exclusivity: PHYSINT reportedly would not have remained a permanent PlayStation exclusive, making the investment less attractive to Sony.
• Concord changed Sony’s oversight: Its failure reportedly prompted stricter production milestones, adding pressure on projects to meet their targets.
• Kojima’s longtime supporters at Sony have left: Many executives who had built close relationships with him are no longer at the company.
• Budget and missed deadlines: PHYSINT reportedly missed development deadlines and was heading significantly over budget despite still being years from release.
• Death Stranding’s performance mattered: Both games reportedly fell short of Sony’s revenue expectations, contributing to its decision to withdraw from PHYSINT.
• Xbox sees a broader opportunity: Microsoft reportedly plans to release PHYSINT on Xbox and PC. Its publishing agreements for PHYSINT and OD also include film and television rights.

Source: Bloomberg

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