Gamers might’ve expected more layoffs from Microsoft, but this one is definitely not on anyone’s bingo card this year. After OD, XBOX has now ‘expanded’ its partnership with Kojima Productions by picking Physint up after Sony ‘unexpectedly’ pulled out of the development process. But that’s not the only surprise they have, as both companies are also collaborating ‘across film and television’ for more projects.
“Today, KOJIMA PRODUCTIONS announced the next chapter of its partnership with XBOX,” declared CEO Asha Sharma victoriously in a press release. “We’re honored that Kojima-san has chosen XBOX to work with KOJIMA PRODUCTIONS on PHYSINT. His ambition to challenge conventions reflects the kind of creativity we want to support at XBOX.“
Beyond OD and Physint, Microsoft said the partnership will extend outside games. XBOX and Kojima Productions will be working together on film and television projects aimed at ‘bringing new stories’ to broader audiences.
The announcement was immediately met with shock online. “I just saw the update on Twitter that Sony was no longer partnering on this with Kojima, that didn’t take long,” wrote one Reddit user. “Sony is on a generational run to end their generation,” quipped another, adding, “Genuinely what kind of crack are they putting in their boardrooms now.” An X user echoed that sentiment as well, “PlayStation is currently being run by the biggest idiots on planet earth. Genuine morons.”
![OD - KNOCK Teaser Trailer - [ESRB] 4K](https://thenerdstash.com/wp-content/cache/flying-press/f84b9082d54d3a45a0245f081cca7fc6.jpg)
Sony, meanwhile, confirmed that it was the one stepping away from the project. In a statement on social media, the company said it had made the ‘difficult decision’ to stop collaborating with Kojima Productions on Physint. Stressing that its relationship with Kojima remains strong and is looking forward to working with him again in the future.
Over on X, Kojima added that Sony’s decision took him by surprise. “[…] in mid-June of this year, we unexpectedly received notice from PlayStation Studios that they would cancel the PHYSINT project,” he wrote, noting that Kojima Productions has since then spent months searching ‘tirelessly’ for a new home. “[…] we found in XBOX a partner with whom we share a common vision for the future, and we have decided to team up with them once again.”
The move is rather surprising, considering how Physint was originally introduced. It was first announced during February 2024’s State of Play, where Kojima described it as a new action-espionage game made ‘in cooperation with Sony.’ PlayStation Studios boss Hermen Hulst even appeared to hype up the project, with Kojima pointing to nearly 30 years of history between himself and Sony.
Despite its secrecy, there had also been little to no indication that the progress on Physint was in trouble. As recently as early 2026, Kojima was still discussing face scanning and motion capture work for the project. Actors Charlee Fraser, Ma Dong-seok, and Minami Hamabe have been confirmed to be involved with the game.
For now, what caused Sony to walk away from Physint and leave it ripe for XBOX to scoop up remains unclear. But after he criticized PlayStation’s plan to kill off physical discs, perhaps Green really is becoming Kojima’s new favourite color.
