Hideo Kojima still can't wrap his head around why PlayStation axed funding for Physint in mid-June, calling the Zoom call notice a complete shock that left him staring at the ceiling wondering how to keep his independent studio afloat. The Metal Gear creator told The Washington Post he thought the action-espionage project was safe after decades of collaboration, describing it as the biggest-selling title he could possibly create and stressing that corporations move like living things without turning personal. Kojima Productions spent the next three months hunting for a new backer before landing on Xbox, which is already publishing the studio's horror title OD, with no layoffs and staff shifted to keep both projects moving.

Sony framed the split as a "difficult decision" while insisting the relationship with Kojima remains strong after thirty years, but leaked details from Bloomberg pointed to missed deadlines, ballooning budgets years from release, and disappointing sales on Death Stranding and its sequel as key factors. Kojima Productions pushed back hard on those claims, labeling them off-the-record speculation and reiterating the studio is in a healthy, profitable state with Physint development continuing under Xbox. The director himself says he still "loves Sony" and holds no grudge, though he wishes the 30-year partnership had warranted an earlier heads-up instead of a sudden funding cutoff.

Xbox CEO Asha Sharma welcomed the move as aligning with the company's vision for ambitious creators, and Kojima confirmed the plot, concept, and actor 3D modeling are already underway while engine testing continues. The entire saga underscores how fragile indie studio survival can be when big publishers pull plugs without warning, even for names as established as Kojima's.