Sony blindsided Hideo Kojima with a June Zoom call that yanked funding from Physint, the Metal Gear spiritual successor, and left the studio head staring at a potential collapse with 200 staff and bank loans on the line. Kojima described the shock as total—his mind went blank, he kept the news from his team for days, and his first thought was how to protect the people he'd hired for the project rather than any anger at the 30-year partner. No explanation came then or since, despite the long history with Kutaragi and Hirai, and the sudden notice arrived while Kojima was juggling OD for Xbox and Physint for PlayStation.

Kojima Productions scrambled for three months, pitching a broader IP vision across games, film, and more, before Xbox under new CEO Asha Sharma took the project on the strength of shared ambitions beyond a single console. The switch means both of Kojima's current titles now sit with Microsoft, and Physint may never appear on PlayStation. Bloomberg reported missed deadlines, budget overruns, and Death Stranding sales shortfalls as the real drivers, but Kojima Productions pushed back hard, calling the studio healthy and the relationship with Sony intact.

The episode shows a veteran creator treating his team like the priority while an old partner treats a flagship project like a line item. Xbox gains a high-profile espionage title and Kojima gains breathing room; Sony gets to look decisive about its portfolio right as the industry tightens.