Physint’s publisher switch left Kojima fearing for his studio

The game had progressed beyond a pitch. Kojima said its plot and concept were written, storyboards were in place, 3D-model work had begun, and actors had been scanned. Kojima Productions separately confirmed Bill Skarsgård as the lead and said costume fittings, scans and camera tests with Skarsgård and Charlee Fraser took place earlier this year. The studio has not selected a final engine or announced a release date.

The reported reasons remain disputed

The Washington Post summarizes Bloomberg's reporting that Sony had concerns about the project's budget, missed deadlines, potential profitability and exclusivity, as well as the commercial performance of the Death Stranding games. Kojima Productions did not offer a different reason for Sony's exit. Instead, it said those claims did not come from official or on-the-record sources and encouraged readers to treat them with skepticism.

The studio's written statement also says Kojima Productions is healthy and profitable, Physint is moving forward with Xbox, and its relationship with PlayStation remains strong. That leaves a clear distinction between the confirmed change and the unresolved explanation: Sony stopped funding the project, but neither company has publicly supplied a reason for the decision.

Kojima said he approached several potential partners before returning to Microsoft, which already had a relationship with the studio through OD. Kojima Productions announced Xbox as Physint's new partner on September 10. Despite the split, Kojima described his relationship with Sony as a decades-long connection rather than a dispute. Physint survives, but its new publisher, unfinished technology choices and lack of a release date show how much of the project remains unsettled.