PlayStation tried to cancel Physint outright in mid-June. Kojima Productions spent the next three months hunting for a new partner before landing at Xbox, turning a long-time Sony collaborator into a Microsoft priority.

Sony's statement framed it as a 'difficult decision' while insisting the relationship 'remains strong' after decades of work. Kojima's version was more direct: an unexpected cancellation notice that forced the studio to shop the project across the industry. Xbox CEO Asha Sharma called it a 'big moment' and noted the expanded deal now covers film and TV in addition to games.

The move puts both of Kojima's active projects under Xbox. Physint, pitched as a next-gen action-espionage title and spiritual successor to Metal Gear, was announced as a PlayStation exclusive in 2024 with casting including Charlee Fraser, Don Lee, and Minami Hamabe. Development had already moved past concepting, with performance capture slated to ramp up later this year. Sony's loss is now Microsoft's showcase.