In a recent IGN interview, Hideo Kojima disclosed that Sony terminated its partnership with PHYSINT during a June Zoom call, offering no explanation. Although he admits he didn’t press for details, Kojima clarified that the two companies are “not in a dispute” after nearly three decades of collaboration. He noted that he wished to have been informed earlier, prompting his studio to spend three months seeking a new partner before ultimately signing with Xbox, which they were already developing OD with.

The interview preceded a Bloomberg report citing unnamed sources claiming PHYSINT was behind schedule, over budget, and that Death Stranding missed PlayStation revenue targets. Kojima Productions has labeled those claims unverifiable and affirmed the studio remains healthy and profitable. When asked if PHYSINT could still launch on a Sony platform, Kojima said he is unsure and deferred to Xbox.

He added that Xbox aims to reach the widest player base, though specifics are pending.