Abstract:
Hideo Kojima, a well-known Japanese game producer, recently publicly talked about the separation of "PHYSINT" and Sony for the first time. He said that Sony Interactive Entertainment suddenly informed Kojima Productions during a Zoom video conference in June this year that it would no longer provide development funds for this high-profile new espionage theme, and no clear explanation was given during the entire process.

In an interview with the media, Hideo Kojima recalled that Sony proactively requested an online meeting. Since I was traveling between New York and Los Angeles to attend events, I finally returned to Japan and attended the meeting. At the meeting, Sony officially stated to Kojima Productions that it would stop funding the development of "PHYSINT".
Hideo Kojima admitted that he did not expect this decision at all at the time. He said that when the other party said that he would no longer continue to fund the project, he once doubted whether he heard the content correctly, because the shock level made it difficult for the brain to immediately process the information in front of him.
However, Kojima also said that he did not ask for too many details during the meeting. Faced with the sudden decision, his first thought was not the reason, but how to keep the company alive.
According to reports, Kojima Productions is an independently operated game development company and does not have long-term financial support from large corporate groups. Companies usually adopt a project financing model to survive, that is, each game project looks for partners and funding sources separately to maintain team operations. Since PHYSINT is already in development and a large number of people have been recruited within the team for the project, the impact of Sony's exit goes beyond the loss of a publishing partner.
Kojima said that what he was most worried about at the time was what would happen to the studio in the future. He is worried about the impact on the positions of employees in the "PHYSINT" team, and is even worried about the pressure on the company's cash flow. Since the studio has sought financing from banks in the past, its ability to raise funds in the future may also be affected once the project is canceled or terminated.
Nonetheless, Kojima emphasized that this incident did not mean a conflict between the two parties. He said that there is no dispute between him and Sony, and he has no hostility towards the sudden termination of the cooperative relationship. Looking back on the nearly 30 years of cooperation, Kojima admitted that he has always had deep feelings for Sony and maintained a good relationship with previous Sony executives. But with changes in the company's management and organizational structure, today's situation is different from the past.
However, Kojima also said that if Sony could make a decision earlier and inform the team in advance, the studio would have more time to respond and adjust.
After Sony withdrew, Kojima Productions immediately began to look for new partners for "PHYSINT". After about three months of contact and negotiation, the company finally reached a cooperation agreement with Microsoft. In fact, Kojima Productions has previously co-developed a new horror-themed game "OD" with Microsoft, so the two parties already have a basis for cooperation.
Previous reports stated that Sony's abandonment of "PHYSINT" may be related to project schedule delays, increased budget pressure, and the commercial performance of the "Death Stranding" series not meeting expectations. However, these claims were later questioned by Kojima Productions. The studio publicly stated that the relevant content came from unconfirmed anonymous sources and emphasized that the company's current operating conditions are healthy and profitable.
As for whether "PHYSINT" will still have a chance to land on the PlayStation platform in the future, Hideo Kojima said that he could not give an answer. He believes this issue should be decided by Microsoft, which is now responsible for distribution.
At the same time, Kojima revealed that he personally understands that Microsoft wants to expose more players to its games, so cross-platform distribution is not impossible in theory. However, the relevant plans have not yet been finalized, and more information will be announced in the future.
At present, the specific distribution platform and launch time of "PHYSINT" have not yet been announced. What is certain is that this project, which Kojima defines as a "new generation espionage action game," has completed partner switching and will continue to advance development with the support of Microsoft.
For the game industry, this change in cooperation is also regarded as one of the most surprising project adjustments in recent years. On one side, Sony, which has been cooperating with Kojima for decades, suddenly withdrew, and on the other side, Microsoft took over this highly anticipated new IP. With the industry as a whole facing rising costs, shrinking projects and pressure on risk control, the future development of "PHYSINT" will undoubtedly continue to attract attention from the outside world.
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