Sony Interactive Entertainment has reportedly ended its publishing agreement for Hideo Kojima’s upcoming title, Physint, following internal disagreements over development milestones and financial projections. According to a Bloomberg report, the decision to step away from the project was driven by the title missing internal development deadlines and tracking toward a budget that would exceed Sony’s initial allocations.

The dissolution of the partnership marks a significant shift in the relationship between Sony and Kojima Productions, which had previously collaborated closely on the Death Stranding franchise. This shift is reportedly tied to the commercial performance of Death Stranding 2: On the Beach. Internal data suggests the sequel sold approximately 2.5 million copies, a figure that reportedly fell short of Sony’s revenue targets and prompted a reevaluation of the studio’s high-budget espionage project.

In the wake of Sony’s exit, Microsoft has moved to secure the project. Xbox officially announced that it has acquired the publishing rights for Physint, confirming that the title will now launch on Xbox consoles and PC. In a statement regarding the acquisition, Xbox CEO Asha Sharma described the project as a “good investment opportunity” for the Microsoft ecosystem, emphasizing the company’s commitment to Kojima’s vision for the espionage genre.

The transition occurred over a three-month window following a cancellation notice Kojima Productions reportedly received from Sony in mid-June 2026.

Analysis of the deal suggests Sony’s reluctance was also influenced by platform strategy. Reports indicate SIE was hesitant to continue funding the project because it was not planned as a permanent PlayStation exclusive, with Kojima Productions intending to bring the title to other platforms eventually. Under the new agreement with Xbox, the game will benefit from Microsoft’s publishing infrastructure while maintaining its current creative trajectory.

Development on Physint continues with several high-profile actors already attached to the project. Talent currently confirmed for casting and performance capture include Charlee Fraser, Don Lee, and Minami Hamabe. Despite the change in publisher, the project remains positioned as a “next-generation” evolution of the tactical espionage action genre Hideo Kojima popularized earlier in his career.