Sony Drops Hideo Kojima’s Spy Action Game PHYSINT as Xbox Steps In as Publisher

Hideo Kojima’s spy action game PHYSINT is no longer a PlayStation project. Sony Interactive Entertainment has ended its co-development and funding of the ambitious title, prompting Microsoft’s Xbox gaming division to step in as Kojima Productions’ new global publishing partner. Both companies have officially confirmed the news.
Sony’s Sudden Departure and the Xbox Deal
According to the Japanese game designer, the decision by PlayStation Studios management came as a complete surprise: the studio received official notification that Sony was pulling out back in mid-June 2026. To save the project from cancellation, Kojima Productions spent around three months looking for an alternative publisher. Sony has not disclosed the reasons for breaking off the deal.
In the end, Microsoft acquired the publishing rights. As stated in the official announcement on Xbox Wire, Xbox will handle global distribution for PHYSINT, expanding its partnership with Kojima, who is also developing the experimental cloud horror game OD for Microsoft’s ecosystem.
A statement on the Kojima Productions website emphasizes that the alliance extends beyond gaming, with both sides agreeing to co-produce film and television projects. However, this isn’t a total split from Sony: PlayStation representatives noted that they maintain a warm relationship with the developer and look forward to future joint releases.
What We Know About PHYSINT and Its Development Timeline
The project was announced in early 2024 as a spiritual successor to the Metal Gear series. Kojima describes the game as a next-generation cinematic tactical action title bridging the gap between video games and Hollywood films.
The studio has already confirmed its core cast: a Kojima Productions presentation verified the involvement of South Korean action star Ma Dong-seok (“Train to Busan”), Australian actress Charlee Fraser (“Furiosa”), and Japanese star Minami Hamabe.
The game remains in early pre-production. As noted by GamesRadar+, Kojima previously warned that active development on PHYSINT would take five to six years. Following the move to Xbox, specific target platforms have not been detailed, but the spy blockbuster isn’t expected to launch until the early 2030s.