PlayStation allegedly had "concerns over budget, potential profitability, and exclusivity" over Kojima Productions' Physint

GamesIndustry.biz reports PlayStation has discontinued its involvement with Kojima Productions' Physint, citing concerns over budget, potential profitability, and exclusivity. Bloomberg sources say the project had already missed deadlines and was tracking well over budget despite being years from release.

The business case appears to have been shaped by the performance of Kojima Productions' recent PlayStation-linked releases. Sources said Death Stranding and Death Stranding 2: On the Beach did not hit PlayStation's revenue expectations, making the platform holder wary of committing hundreds of millions more to another timed exclusive.

Kojima said the studio received notice in mid-June that PlayStation was canceling the project, while PlayStation said it had made the difficult decision to step away but still expects to keep working with Kojima Productions in other ways. For developers, this is another reminder that even marquee creative partnerships can hinge on hard ROI math, especially when exclusivity is part of the deal.

Physint has now found a new partner in Xbox, extending Kojima Productions' relationship with the platform holder beyond its in-development horror title OD. Xbox's Phil Spencer framed the move as backing creators' freedom to choose where their ideas land, while Kojima said the studio remains committed to redefining action-espionage.