Kojima Productions denies studio is in trouble

After Sony dropped Physint and it moved to Xbox, Kojima Productions says it's healthy and profitable despite industry rumors.

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Sep 20, 2026

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Kojima Productions denies studio is in trouble

After Sony dropped Physint and it moved to Xbox, Kojima Productions says it's healthy and profitable despite industry rumors.

In brief

After Sony dropped Physint and it moved to Xbox, Kojima Productions says it's healthy and profitable despite industry rumors. Kojima Productions is financially stable despite losing Sony's funding for Physint and industry-wide studio closures. Originally reported by The Verge.

Sony drops Kojima's Physint

Sony ended its partnership with Hideo Kojima Productions on Physint. The game will now release on Xbox instead, marking a major shift for the Metal Gear Solid creator.

Reports blame missed deadlines

Bloomberg reported the split was driven by missed deadlines, budget concerns, profitability issues, and timed exclusivity disagreements between Sony and Kojima Productions.

Kojima worried about studio collapse

Kojima worried about studio collapse

In an IGN interview, Kojima said he feared losing the Sony contract could force layoffs or studio collapse due to cashflow problems amid industry-wide studio closures.

“If we lose one contract, I thought I might have to cut all the people working on Physint, right?”

Studio disputes financial trouble claims

Kojima Productions issued a statement saying it is in a healthy, profitable state, despite reports of disappointing Death Stranding sales and loss of Sony funding.

“the studio is in a healthy, profitable state.”

PlayStation relationship remains strong

The studio emphasized its relationship with PlayStation remains strong, signaling no broader rift with Sony despite the Physint move to Xbox.

The takeaway

Kojima Productions is financially stable despite losing Sony's funding for Physint and industry-wide studio closures.

Read the original on The Verge

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