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Kojima shocked by Sony Physint funding cut, Xbox steps in

Published 20 September 2026

Hideo Kojima was shocked when Sony informed him in a June Zoom call that it would no longer fund the development of his upcoming game, Physint, a decision that sent the veteran game director into a frantic three-month search for a new publishing partner. The situation, which Kojima described as a serious threat to the survival of his independent studio, was ultimately resolved when Xbox stepped in to take over publishing duties. Kojima recounted the moment in a recent interview, stating he was in a state of shock and could not immediately process the news. "I thought, 'What am I going to do from tomorrow?'" he said. "I thought I might have to cut all the people working on Physint, right? Or our studio could end up collapsing because we'll run out of cashflow." He noted that the studio had borrowed money from a bank, making the loss of funding a critical issue. Despite the blindsiding decision, Kojima expressed continued respect for Sony. "From my side, I love Sony. And I don't have any bad feelings against them because I know that it's a tough time in the game industry," he said.

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