Kojima Productions released a statement denying recent reports, asserting the studio is healthy and profitable, with PHYSINT development continuing with Xbox and a strong relationship with PlayStation.

Bloomberg’s report is cited as suggesting Sony’s concerns—missed deadlines, budget overruns, and weak commercial performance of Death Stranding games—factored into the decision to exit PHYSINT.

The studio warns that unfounded speculation about its PlayStation ties, Death Stranding profitability, and PHYSINT plans is harming it and its partners, urging caution with articles lacking official sourcing.

PHYSINT’s lead actor is Bill Skarsgård, with Don Lee also announced as part of the cast as the project progresses under Xbox.

PHYSINT was first unveiled at State of Play in 2024, and Hideo Kojima appeared at the Xbox TGS 2026 Showcase to discuss its status and OD’s development.

In an IGN interview, Kojima explained that Sony stopped funding PHYSINT and that he pitched the project to Xbox, which responded with strong interest.

Kojima acknowledged the challenges of running an independent studio and spoke about seeking a new partner to safeguard the studio’s independence and future.

Xbox and Kojima Productions have extended their collaboration beyond PHYSINT and OD into film and television projects.

The overall tone presents a cautious, amicable stance toward PlayStation while highlighting Xbox’s role in supporting and potentially rescuing the project.

There is uncertainty whether a PS5 version of PHYSINT will occur, but current indications point toward Xbox exclusivity under the present circumstances.

PHYSINT currently has no release date, with expectations leaning toward PC and Xbox platforms rather than PlayStation.

Readers are advised to be skeptical of unofficial or Bloomberg-originated claims about PHYSINT’s development troubles and publisher changes, as those claims aren’t from official sources.