Hideo Kojima "couldn't understand" why Physint "would be on the list of being cancelled" by Sony

GamesIndustry.biz reports that Hideo Kojima says Sony unexpectedly cut funding for Physint in mid-June, despite his belief that the project had been agreed with PlayStation Studios. Kojima said he was shocked by the decision, but not angry, and immediately had to figure out how to keep the studio stable without alarming staff.

Kojima Productions ultimately found a new partner in Xbox, which is also backing the studio’s horror game OD. Kojima said the funding change did not lead to layoffs; instead, most staff were moved onto OD while a small team continues Physint. He also stressed that the studio remains healthy and profitable, and that its relationship with PlayStation is still intact.

The practical takeaway for developers is familiar: even marquee projects can be vulnerable when budgets slip or timelines stretch, and independent studios can be exposed if a single publisher pulls support. Kojima said Physint’s concept and plot are already complete, with actor 3D scans underway and engine testing in progress, but the exact reason for Sony’s decision has not been publicly detailed.

The story also lands in the shadow of Kojima’s past cancellation experience with P.T., which helps explain why he was reluctant to tell cast and staff that Physint might be in jeopardy. For teams watching publisher risk, this is another reminder that financing, schedule control, and backup partners matter as much as creative ambition.