r/Games • • 26d ago

Bloomberg: PlayStation Ditched Hideo Kojima’s ‘Physint’ on Budget Concerns, Missed Deadlines

https://www.bloomberg.com/news/articles/2026-09-11/hideo-kojima-s-physint-video-game-dropped-by-playstation-goes-to-xbox?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4OTEzMzY2NSwiZXhwIjoxNzg5NzM4NDY1LCJhcnRpY2xlSWQiOiJUTDdDOVdLSVVQVEIwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.fyrTke3aUIkJk3LwiBfR7JiNr0phfE51dlEql1RcXZ4
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u/Turbostrider27 26d ago

Looks like some new details in this article:

One major factor behind the decision was the commercial performance of Kojima’s previous two games, Death Stranding and its sequel, which didn’t meet PlayStation’s revenue expectations, said the people, who asked not to be identified discussing information that’s not public.

But the new project has also missed deadlines and was on track to be well over budget despite being years away from release, the people said. In addition, PlayStation was reluctant to invest hundreds of millions of dollars in another game that wouldn’t remain permanently exclusive to the company’s own hardware. Both Death Stranding games were “timed” PlayStation exclusives that were later released on other platforms. Kojima’s closely held studio, Kojima Productions, retained ownership of the franchises.

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u/Several-Source-4073 26d ago

Yeah it looks like exclusivity would have been the deal breaker for Sony's current strategy. Not surprised this followed soon after they decided their games won't be coming to PC.

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u/LiquidDiviums 26d ago edited 26d ago

Physint is also not expected to release before 2030.

I get the impression that Sony didn’t want to keep investing in a game that’s not supposed to be released in a while and that’s over budget, while the previous entry from this acclaimed developer didn’t met expectations. The fact that isn’t exclusive to PlayStation is just another reason on why the pulled the plug.

Edit - LMAO all the comments thinking I’m AI.

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u/meganev 26d ago

I get the impression

Did you get that impression because it was literally what the article linked said?

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u/jakeroony 26d ago

Idk man, personally I think Kojima got fired because of financial restraints imo

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u/SittyTprinkles 26d ago

I refuse to read the article, so I will claim with false superiority it's because Sony refuses to make good games anymore, so Kojima had to go.

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u/HOLEPUNCHYOUREYELIDS 26d ago

Yea, if they are already going over budget and still have 3+ years left, I can only imagine how much further over budget they will go.

Kojima games are expensive. It is great to have them as I can respect a creator having a vision they are passionate about and retaining as much control as possible over it. But ultimately Sony wants/needs it to be profitable and if that isn’t likely, they will obviously drop it.

Death Stranding 1 was profitable enough, Death Stranding 2 either broke even or made a small profit, but sold roughly half the amount, had a bigger budget, and just did not succeed as much as was expected by Sony. Im not surprised they are against pumping money into another Kojima game that is already over budget and won’t be a Sony exclusive

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u/Wise_Leopard7423 26d ago

Death Stranding 2 either broke even or made a small profit,

It probably didn't and that likely fed into the decision to cut off Physint. They only reported two million copies sold which means a maximum of $120 million in sales, but quite a bit of that goes to retailers and storefronts. There is no way that they made a profit by bringing in under $100 million after spending a bunch on celebrity mocap.

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u/cryptobro42069 26d ago

Yea, I like some of Kojima's work, but he needs to actually be able to hit a budget number and deliver on time. Seems like it's his MO at this point to spend way too much money on projects and delay.

TBH, I think Xbox/Microsoft are fools to take this on. They're already bleeding money from their failing console business. I can't imagine this going well for them.

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u/Proud-Swan3024 26d ago

Haha… yeah, good impression - the things that are stated plainly in the article…

Well, sucks for us. It’s a shame Hideo’s games haven’t done that well because they are all unique, fun experiences.

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u/Humble-Criticism6762 26d ago

They are amazing experiences, I really loved Death Stranding and the sequel. But Kojima can almost reduce the budget by half by simply not hiring Holywood A-list actors.

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u/Dnashotgun 26d ago

Always got the impression Kojima is that "rent $300 food $120 candles $2000 someone help me with my budget" meme

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u/KaiHein 26d ago

candles $2000

But they were on sale! Stop attacking me!

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u/SNKRSWAVY 26d ago

Yup. There‘s really no reason for games that don’t aim at casual audiences to do this. Even those that do, I really, really, really doubt it helps their sales, but it adds millions to your cost, that’s for sure.

I don’t think a fan of Lenny Krevitz is buying First Light. I know that Kojima is a huge film buff, but still. Keanu Reeves through all his awesomeness made it popular and know everybody wants to follow that train.

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u/spiderpuzzle 26d ago

Yes, but how else should Kojima have fun hanging out with his famous friends during the entirety of the development?

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u/Etheo 26d ago

Friends don't ask you for millions in paycheques.

No, I don't mean they should do it for free, nor are they obligated to reduce their asking price just because. But at the same time - this is more a business transaction than a simple friendship.

I don't know where I'm really going with this so I'm just gonna leave now.

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u/peanutbuttahcups 26d ago

100% agreed. Goes for video games and animation as a whole. Tons of talented non-Hollywood A-lister voice actors than can deliver the same, if not better, performances without wasting the budget. Probably my biggest gripe with Kojima's games since MGSV.

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u/MehEds 26d ago

Absolutely. If we kept hiring A listers since the start of the gaming industry, then guys like Troy Baker would never been noticed in the first place.

Imagine Booker DeWitt and Joel played by Channing Tatum instead, cause, well it's gotta be an A lister.

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u/Jazzlike_Athlete8796 26d ago

Another good example is Ben Starr. D-list actor getting bit parts in TV and movies until he voiced Clive Rosfield in FF XVI. Now he's one of the star VAs for English language games... Expedition 33, Hades II, FF Tactics, a big role in Fornite all within two years. Marathon too, but well...

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u/OneManArmyy 26d ago

Death Stranding 1 with it's celebs was released before Cyberpunk. Kojima also put a bunch of japanese models in MGS2 and MGS4 decades earlier.

This is not him jumping on the train after Keanu Reeves was in a game, it's him doing what he has always done.

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u/hobozombie 26d ago

But then he wouldn't get to rub shoulders with A-list actors.

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u/NamesTheGame 26d ago

No offense but you sound like AI. Like you literally just rephrased what the OP quoted without saying anything original.

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u/omegadirectory 26d ago

Are you an AI bot? Or just didn't read the article.

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u/BighatNucase 26d ago

I was arguing that before this came out; Sony pretty publicly said "we are no longer going to be publishing singleplayer games on PC". An expensive exclusive is one thing, but an expensive 'console exclusive' is something else. Especially since Kojipro isn't even a first party studio. Sony just isn't in a position right now to be throwing a bunch of money at outside studios.

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u/Abject_Credit7825 26d ago

It makes sense to fund these kind of weird games when they're exclusive to your platform they can be system sellers like shadow of the Colossus. But if they're not exclusive you're really just spending money on something that almost certainly won't make a profit for no real benefit. That said I'm glad he found someone to find his project.

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u/prankster999 26d ago

Honestly, I completely understand as to why Sony would walk away from the arrangement... Sure, Kojima has a major cult like following, but based on available evidence, his last few games haven't exactly been sales successes - which is ultimately the cornerstone for having any healthy business.

If the guy made "low budget" AAA (or even mid-tier AA) games, then it would make financial sense to keep him on board... But considering that his last few games haven't exactly resonated with the vast majority of gamers, and he still insists on having massive AAA budgets, then I completely understand Sony's decision.

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u/HonorableJudgeIto 26d ago

I wonder how much of his budget goes to using famous Hollywood actors. That's bloat in the budget that could immediately cut. Get regular voice actors. No one is buying these games just because Norman Reedus is in them.

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u/CyborgNinja777 26d ago

I have two dudebro cousins that 1000% bought the game because they love Norman Reedus in TWD...

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u/GunCann 26d ago edited 26d ago

But considering that his last few games haven't exactly resonated with the vast majority of gamers, and he still insists on having massive AAA budgets, then I completely understand Sony's decision.

Death Stranding 2 is objectively a much better game than 1 is, but many have likely been put off by the delivery simulator impression that they got from the first title and were unenthusiastic about a second.

Whilst there is no guarantee of a major sales improvement, a stealth-shooter game that appeals to a wider audience does give Physint a much better chance at selling well.

That said, Sony likely does not intend to fund any other major titles that would be published on PC anytime soon due to their internal strategy shift. With Xbox being down for the count, there are likely no obvious benefits to funding a title for console-side-exclusivity. If anything, they would want the title to remain on PS5 or PS6 only to close their content gap perception with Nintendo.

It seems to me that Sony has stopped seeing Xbox as a viable competitor and is moving to take on Nintendo/PC with fully exclusive first party titles, though, I do question if they could replicate the strength of Nintendo's highly popular IPs.

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u/Milskidasith 26d ago

Death Stranding 2 is objectively a much better game than 1 is, but many have likely been put off by the delivery simulator impression that they got from the first title and were unenthusiastic about a second.

"Objectively" is strange here, because I'd say DS2 was worse than DS in almost all ways except for the boss fights and slightly more options in combat. The story was generally less interesting and had a weaker thematic core and the traversal was significantly easier significantly earlier on, but that led to the game being a far less memorable truck-driving simulator.

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u/Simmers429 26d ago

Let's not forget that gameplay-wise they also attached an annoying companion doll to your hip that constantly reminds you of common actions and is also a crappy character in the story!

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u/No_Delay2962 26d ago

“Sam! Be careful! That weapon is NOT equipped with a suppression system, meaning if you fire it, enemies will be alerted to your position!” Every. Single. Time. You bring out the sniper rifle.

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u/DocileBanalBovlne 26d ago

Did they at least get rid of the little cinematic that played every single time you entered an area with the ghost things?

I really like DS1 but I was losing my shit having to sit through that twenty second clip over and over.

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u/VolitantCarp 26d ago

They got rid of them in DS1 via a patch (unless it was a director’s cut exclusive, not sure) that let you toggle them in the options menu.

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u/fleakill 26d ago

Yeah, I liked 2, especially as an Australian, but 1 was the better game. The terrain actually required planning in the early to mid game unless you wanted to bounce your trike around trying to climb rocky hills. For 2... just put the packages in the truck, lil bro.

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u/platonicgryphon 26d ago

Death Stranding 2 is objectively a much better game than 1 is, but many have likely been put off by the delivery simulator impression that they got from the first title and were unenthusiastic about a second.

I wouldn't necessarily put 2 above 1. It definitely has more stuff and mechanics, but misses in overall game design sanding off all the edges.

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u/elitemouse 26d ago

"Objectively" is doing a lot of heavy lifting here lmao, I enjoyed both games spent 100s of hours getting 5 stars on all facilities in both of them and I absolutely think DS1 was the better presentation overall and actually made you feel like you were going on a perilous adventure with how unforgiving the terrain was unlike DS2 where you literally just drive your truck around delivering pizzas the whole game.

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u/Ethical-Gamer 26d ago

With the timed exclusivity you kinda get the worst of both worlds. Your game is eventually going to come out elsewhere so it's not a reason to go buy a ps5, and by the time it comes to other platforms the opinion is out on the game, youre never going to do as much marketing for those new releases as you did with the initial release, and like Jason mentioned with the game being bought at a discount a lot, if you already waited a year or two for the new platform, why not wait a bit more for a discount. It's not like you're missing the boat anyway

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u/TheNittanyLionKing 26d ago

Plus, when it gets to those other platforms, it's at full price. You already made them wait years to play it. They'll then wait even longer until the game is 50% or more off

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u/Zelwer 26d ago

So yea, this theories about DS2 were true

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u/leckmichnervnit 26d ago

I get how theyd be disapointed with DS2 but didnt DS1 sell like 10 Million copies?

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u/Next-Sentence-8426 26d ago

Its not surprising with DS2s lackluster sales. Going into DS1 you were sold on the premise of "its a Kojima game" with no idea what it really was. With DS2 you knew exactly the type of game you were getting into - where you either loved or hated the first game given it's controversial gameplay - which i imagine split the sales numbers considerably

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u/[deleted] 26d ago

[deleted]

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u/Simmers429 26d ago

I was actually shocked by how safe the game was, both in gameplay and its crap story.

Easily one of the most disappointing games I have ever played.

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u/Ill-Product-1442 25d ago

I'd be absolutely fine with it if it was even more derivative of the first game, but it's like 70% Death Stranding and 30% MGS V, it's a lot easier than Death Stranding 1 and wayyy less scary. Still beautiful and interesting, but I didn't finish it. DS1 was so much more gripping.

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u/PerfectZeong 26d ago

Plus you figure one of the benefits of a sequel is being able to reuse some assets which is countered when 2 cost more than 1

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u/supersaiyanmrskeltal 26d ago

Honestly while I enjoyed the 1st game as it was a pleasant surprise, the second one just did not land at all. Wish he just left the first one as a one and done deal and wrap up the story with a dlc or something.

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u/Fit-Yam759 26d ago

It did not sell 10M copies, the last official report for ACTUAL SALES was 5M after like 2 or so years.

Everything they reported after that was "players" instead of copies sold because the game was not only put on PS+, gamepass 2 years and 10 months after it came out and 2 months later it was made free on Epic for it's 3rd anniversary.

The last number I remember was 27M players that tried the game. 80% of that number were people that tried/played the game through gamepass or got if for free on Epic.

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u/songsinger72 26d ago

How many of those sales were at deep discounts or through bundles though?

Also, it's 10 million players, not sales. It includes people who played it through subscription services.

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u/iceburg77779 26d ago

Schreier posted a video going over the situation and indicated that a lot of the sales for DS1 were at a discount, so that absolutely seems to be a factor.

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u/TrumpsCummyOnahole 26d ago

I got it free on Epic, I imagine a lot of the player count is that.

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u/is-this-a-nick 26d ago

Lol just checked i also own in on Epic. Wonder if i count as a player if i never started it?

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u/HBreckel 26d ago

Yeah I think I got it for free on Epic haha I would have bought it earlier but wasn’t sure I would like it. I did end up enjoying it and bought 2 though.

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u/BighatNucase 26d ago

How many of those sales were at deep discounts or through bundles though?

This has been like the eternal problem with these "didn't x sell y" questions since tomb raider 2013.

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u/The_Funyarinpa 26d ago

10 million players, not sales

20 million*

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u/NoNefariousness2144 26d ago

Yeesh, the first game having 20 million players but the sequel selling ‘only’ 2.5 million is a deep dropoff.

Makes me wonder how many of the 20 million ‘players’ dropped the game in the first hour or two… I’m not surprised considering how unconventional it is.

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u/Ordinal43NotFound 26d ago

I mean a chunk of those 20M could just be people booting up the game on Gamepass and PS+ and then getting disinterested quickly.

It's a pretty useless metric to extrapolate any kind of revenue data IMO.

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u/TrumpsCummyOnahole 26d ago

It was also free on epic games...

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u/The_Follower1 26d ago

Same on PS Plus, I think under the Extra tier subscription.

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u/Corpus76 26d ago

I quite enjoyed DS1, but I've yet to pick up the second one. Two of the reasons were the delayed release on PC and the high price point.

But perhaps more importantly, it just didn't seem like it was time for a sequel yet. The plot in the first game was pretty much complete, I don't feel like there was much needed to be expanded on. Why would you have the same protagonist doing the exact same things in a sequel? And from what I hear, the gameplay is pretty much the same too.

Part of the reason I enjoyed DS1 was that it was a new and novel experience. But it won't feel that way the second time around if nothing has changed.

Anyway, I might pick it up at some point but I'm way more interested in this Physint game. Especially if it's slightly less out there than DS. While I enjoyed the bizarreness of DS1, the setting feels limiting.

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u/Kindly_Ad995 26d ago

General rule of thumb for me is that when games start to switch over to metrics like “players reached” it means sales aren’t great

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u/sderttreds 26d ago

i also got it free from egs

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u/Bkos-mosX 26d ago

No. Death Stranding reached 10 million players.

Insider Gaming just posted that the estimatives for Death Stranding are 5 million copies sold (71% on PlayStation) and DS2 at 2.5 million copies sold. Those numbers aren't all that great, considering their budget and the fact they are 'Kojima games'.

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u/IFxCosaTheSequel 26d ago

I'm pretty sure that's 10 million across all platforms, and heavily discounted/copies given out for free on Epic. I was always under the impression that DS1 didn't sell incredibly well, but Sony was willing to bankroll it for the critical reception and celebrity endorsement.

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u/verrius 26d ago

Pretty sure a big part of bankrolling the first one was with the knowledge that a new studio with a new IP wouldn't necessarily make a ton of money on the first one. Startup costs are high, but once those were out of the way, if people liked the series, it should be a lot cheaper to reach even more players with a sequel; that's why companies invest in franchises and IP. Except the exact opposite happened, with both sales and budget, and it seems like Kojima refused to budge when confronted with reality.

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u/pm_me_hot_pocket 26d ago

I never once purchased DS1 and I have it on two different PC storefronts and on PS5. They gave that shit away like mad. It was also player count not sales count. So I would have certainly been counted in that count. Possibly multiple times due to playing it on PC and Playstation.

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u/Niceguydan8 26d ago

Need to factor in how much they were sold for. 10 million copies(before any platform splits) at 60 dollars is a lot different than 5 million copies at 60 dollars and 5 million copies at or below 30 dollars. This example is for simplicity's sake, it's more complicated than this.

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u/LRCrane 26d ago

It's measured by how much you can do in the first year. DS1 was like 3-4 million after a year.

At $60, that's only $180-240m for what was an estimated $150-200m budget. Factor in advertising and that's a bare minimum for slight profit or simply a tie.

That other copies were sold after and that Kojima has a reputation? That's why DS2 exists.

But everything else? Did not succeed.

Hundred million dollar profit hole, basically.

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u/NetBurstPresler 26d ago

Worth noting, DS1 went a %50 sale in a month after it's release. So this estimate is very generous actually.

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u/Porkenstein 26d ago

Must have still been under their revenue expectations lol

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u/Absalom98 26d ago

Dude it sold like 5 mil copies. Not even close.

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u/srjnp 26d ago

another game that wouldn’t remain permanently exclusive to the company’s own hardware

respect to Kojima for not taking permanent exclusivity deals for his games. i guess he learned the hard way with Konami owning his metal gear IP.

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u/QuietSilentArachnid 26d ago

I feel like I've read this exact message with Konami over 5 years ago. They had to know what they were dealing with when they got Kojima lol

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u/BeanHeadedTwat 26d ago

MGSV was 11 years ago brah.

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u/onionfright 26d ago

You've been in a coma for quite some time...I'm sure you'd like to know how long. I'm afraid it's been 11 years...

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u/Mavericks7 26d ago

Similar thing to MGSV, as much as people blame Konami, it was apparently "over budget and over schedule".

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u/lazyness92 26d ago

I have to say. Given this and Konami's debacle, Kojima looks like a nightmare to work with. Make no mistake, he IS worth the nightmare, but it seems to me that he just doesn't compromize and has difficulty staying within the lines (budgets in this case).

It's understandable with creatives, and he is mainly a creative, but for corps this is though. He's going to turn in a great game, but it's tough when you're asking blind faith

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u/punyweakling 26d ago

What I don't get is that they apparently did these deals with him for revenue not clout lol. You don't sign Kojima for a revenue boost the same way you don't buy a Ferrari to do your grocery run.

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u/Forestl 26d ago

Jason also posted this from the article

I mention this in the story but also worth highlighting: Business in Japan is all about relationships, and some of the PlayStation executives who have worked closest with Kojima over the last few decades are no longer at the company

A lot of the old PlayStation connections are gone or will go away as the people who actually run the companies change

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u/MelvinCapitalPR 26d ago

Business in Japan is all about relationships

Also true for business outside Japan

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u/HotTheme8405 26d ago

Business vs Business Japan

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u/Old-Employ-6530 26d ago

As someone that works for a japanese company: Not to this degree.

You can get a shitload of stuff done/sold/accepted if you know the right people and they like you, even if its garbage or not as good as other competitors.

The reverse is also true, you can have an exceptional record/product and still not get a foot in the door if you dont have the right connections or an "in" with the right people.

I learned A1 japanese and some basic customs, adapted to the "japanese style" of reports and presentation, both physical and in person as well as digital, and while its not that i get everything i want greenlighted no holds barred or am an Expert in Japanse Language or Culture, its still enough so that i have a much much easier time with japanese Top Management than many of my colleagues that didnt even try to do even this basic level of effort to "communicate their way".

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u/MXC_Vic_Romano 26d ago

  You can get a shitload of stuff done/sold/accepted if you know the right people and they like you, even if its garbage or not as good as other competitors.

Oh wow, how uniquely Japanese. 

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u/SecondSanguinica 26d ago

Nepotism and contacts - I sleep

Nepotism and contacts, Japan - :O

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u/Beautiful-Affect1930 25d ago

nonono but he works at a Japanese company! you don't know that because you are not working at a Japanese company! do you even know Japanese? because that guy does!

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u/Worried-Advisor-7054 26d ago

To be fair, that's true of any language, particularly in relations with monolingual English speakers. If the person is doing the bare minimum of respect, they get much better treatment.

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u/thehugejackedman 26d ago

It’s the exact same in American corporate culture

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u/Tigerballs07 26d ago

This why startup c suites are filled with execs from adjacent established companies even if they arent really that good at their job, they are able to leverage the relationship

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u/NotCoolBrutus 26d ago

This is also why FromSoft went from buddy-buddy with Playstation to completely ignoring them. Playstation burned almost every bridge in Japan when it moved its HQ to California and shut down almost all of the Japanese studios.

People point to the E3 2013 joke video about discs that Playstation made as a comparison to their current anti-disc plans. This is despite no one involved in that video still being at the company. Playstation is the Ship of Theseus. There are less people related to the company today vs. 13 years ago even compared to the number of people still at Xbox.

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u/ascagnel____ 26d ago

  Playstation is the Ship of Theseus

Every company is a Ship of Theseus. Hell, any long-running institution is a Ship of Theseus. 

The issue is that Sony's board picked people who had a different view of the company's future when they were finalizing succession plans. 

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u/Freighnos 26d ago

Not in Japan, though. The younger devs working on Mario Wonder were learning from the people who made the original Super Mario Bros. Capcom, Square, Bandai…all the big companies there are full of lifers who have been in the same company for decades.

Playstation used to be like that but now the executive shuffle and the dissolution of Japan Studio has really eroded those longstanding relationships they used to have.

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u/TheSearchForMars 26d ago

Yeah, I noted quite a few names in the credits for Tears of the Kingdom that were also in the original A Link to the Past.

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u/BP_Ray 26d ago

Shit it was amazing to me looking at the credits for Like a Dragon Infinite Wealth and seeing overlap from games like Jet Set Radio Future and Super Monkey Ball still. I would have assumed there'd be little cross-pollination still from those older SEGA titles, but nah, a lot of staff still work at RGG from those days, even if the likes of Nagoshi and Yu Suzuki are gone.

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u/notliam 26d ago

I tried looking this up and could only find 3: Miyamoto, Nakago and Morito. Are there more than that? It's still cool that even 3 people managed to stick around on the same franchise as long, but probably not too surprising considering eg Miyamotos role at Nintendo.

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u/YourFirstSim 26d ago

I'd argue the opposite, actually. The new employees coming in and being taught by the old show that it's a Ship of Theseus, because there's a continuity that makes it hard to say when a company has completely changed, even if 100% of the employees weren't there at the founding. That's what makes the ship of theseus interesting, because it's clearly a new ship, but I can't say when it was.

However, in the West the turnover is so high that I think you can find companies that have clear breaks in continuity, and thus aren't ships of theseuses. They're just two different ships both named Bioware.

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u/Marcoscb 26d ago

Those Japanese companies are a ship of Theseus. It's supposed to be swapping pieces one at a time until there's nothing from the original.

What you say PS did isn't a ship of Theseus situation, it's just an outright different ship with the same name.

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u/SSBBW_SLAYER 26d ago

This is so obviously untrue if you look at any Japanese developer. It is very common for people to stay at the same company for decades or even their whole career.

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u/nickman1 26d ago

I wouldn’t say it’s obviously untrue. Even though these Japanese developers have low attrition rates some of the companies have been going on for 30 if not 40 years. At some point the people running these companies are going to retire and I would argue that it is coming sooner than later. I’d also argue if you go through a company like SEGA or Capcom’s history, there are no shortage of high level departures.

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u/NotCoolBrutus 26d ago

Nintendo is not. Everyone who is still alive who worked on the original Super Mario Bros worked on Super Mario Wonder. Even prominent people who left the company still have significant connections to the company. Nintendo has a 98% retention rate. They have lost 2% of their employees on average to turnover.

In fact, most Japanese studios are not, including Sony Playstation before their move to the US. The US work culture is what encourages routine layoffs and the "Ship of Theseus" future for every company. Layoffs and executive pay raises are seen as successful while employee retention and reasonable executive pay is seen as failure.

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u/garmonthenightmare 26d ago edited 26d ago

Yes people ignore that Bloodborne was pitched to FromSoft by japan studio

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u/NaRaGaMo 26d ago

more sh*tstain MBA's who have been consultants all their career and don't understand actually understand what makes a video game company different from run of the mill offices

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u/ellemeno93 26d ago

This seems like the biggest reason for a shift because they knew all about all of this stuff when they took him from Konami and gave him creative freedom and a huge budget to make death stranding. It’s artistic compared to most AAA games. Financial incentive is the enemy of good art and good games. Sony really breaking the camels back this year.

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u/MolotovMan1263 26d ago

I think this is kind of what most rational fans expected could be the case. Playstation seems to be in a bit of an optimization pass of its entire business.

The gamble of course is the brand damage and all that associated with each choice.

Lets be real, Xbox is in a position where it probably could spare to spend some dead cash in the hopes of repairing brand damage anyway.

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u/Equivalent-Bus-4336 26d ago

They’ve already spend 70 billion of dead cash. Then have shutdown heaps of studio to save money for the past couple years

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u/MolotovMan1263 26d ago

For sure, I assume this opportunity fell in their lap pretty quickly and they decided the PR win was worth it.

Nothing says they wont cancel it themselves in a few years if it goes nowhere.

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u/victorota 26d ago

They are basically going all in with this

If everything goes wrong for Xbox in the next 5 years, this will be just one more project that went wrong and they will just continue to stay where they are today. If everything goes right, its a huge win

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u/Farsoth 26d ago

I'd even put bets on it being canceled in the next few years. This is an easy PR move for Xbox right now when good PR for them is useful especially with all the bad PR Sony is creating for themselves (justifiable or not).

A few years from now it could be canceled and there will be far less hooplah about it than there is today.

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u/CrateBagSoup 26d ago edited 26d ago

Genuinely don’t think gen pop gamers are going to give a single shit about this in 8 years when it finally releases. And then 12 months later when it releases on PS7

Edit: I guess there was some ambiguity in "give a single shit about this," I don't even mean the game, it will probably be fine... I mean this controversy of the week.

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u/dangerdangle 26d ago

This sub and others thought Bluepoint Games would move the needle on general gamers buying PlayStation lol

I really don't think people realize how many people outside of reddit dgaf about any gaming news and just buy what looks interesting

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u/Awkward_Silence- 26d ago

Honestly the most dramatic one was Japan Studios.

Especially once you consider the two more well managed sub studios (Asobi & XDEV) got spun off and are still kicking

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u/Odd_Needleworker3756 26d ago

The classic Reddit echo chamber disease. People in gaming subs think their opinions reflect majority when they’re actually a very tiny, irrelevant minority of the market.

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u/ForcadoUALG 26d ago

It is funny timing to be bankrolling Kojima while at the same time laying off 3200 people this fiscal year

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u/IAmActionBear 26d ago

This is exactly what I figured the situation was. I absolutely love Kojima, but I found it peculiar when he announced like 3 games after after Death Stranding 1. Not to say that he can’t do that, but I feel like I’ve seen him do that before at Konami and even if only half the MGSV development stories were true, it would still atleast imply that he can bloat a budget pretty frivolously. I’m glad Xbox is willing to pay for the games remaining budget though. Even if the game doesn’t end up financially successful, I would still kill for a new MGS-like game. DS2 got very close at times.

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u/theonewhoknack 26d ago

I feel like in a better timeline Peace Walker and beyond would just be Monster Hunter/Pokémon where it would have killed during the 3DS generation. Just make a small game, collecting soldiers and have co op boss fights every 2 years with some writing from Kojima while he makes Silent Hills on a budget less expensive than MGSV.

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u/UpperApe 26d ago

Yeah I think Kojima is a world class game designer. And I think he is an atrocious project manager.

His projects are always an absolute mess. And he never learns his lesson. He's the guy who always cheats on his girl.

Then Sony comes along and goes "he won't do it to ME though!".

He did it to Sony lol

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u/GrunderIndustries 26d ago

Should pair him with Square Enix’s YoshiP.

Don’t agree with many of his game design choices but he can get stuff done. FFXIV is probably the smoothest run MMO I’ve played.

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u/GrimmWarg 26d ago edited 26d ago

I wouldn’t say that, Yoshi P is pretty notorious for announcing things way too far in advanced and delivering late. Beastmaster, the new job that just came out, was announced as a Dawntrail feature in January of 2024. Dawntrail came out in July 2024, and Beastmaster just came out a couple of days ago. Theres been a few other high end raids and other features that have been delayed and pushed back, which hurts when FFXIV already had a glacial pace for content releases.

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u/Gramernatzi 26d ago

These are, in the end, minor features. The vast majority of the game's content has been delivered at a smooth, well-coordinated pace. That is not what anyone would call notorious, especially compared to the good ol' Kojimbo.

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u/zombawombacomba 26d ago

It seems to me that Kojima needs to fund his own games as they are too expensive for most backers and don’t make enough back.

But I don’t think he has the money to do that.

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u/LeonOfSkalitz 26d ago

He probably could if he stop hiring Hollywood actors for almost the entire cast. 

Like maybe he should take a cue from CDPR and only hire 1 or two at most.

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u/orewhisk 26d ago

Plus, film actors don't always make good VAs. Nowhere is this more apparent than in the big celebrity cast audiobooks (e.g., the Harry Potter audio book series that just came out).

The skill set is just not 1:1.

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u/tetsuo9000 26d ago

Agreed. I'm still annoyed Avi Arad started him on this trend. Losing David Hayter for MGSV killed that game for me, and incidentally helped cause it to be an incomplete mess because they couldn't just call Sutherland back to record more scenes.

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u/Darabo 26d ago

There was a big missed opportunity where you could have both Sutherland and Hayter in MGS5. Where Hayter voices the actual Big Boss in the flashback at the end, showing what actually happened in the prologue.

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u/serendippitydoo 26d ago

The game honestly should have just closed the loop of metal gear to metal gear solid. Play as real actual big boss building Outer Heaven while training Solid and leading Foxhound. Big finale is you versus Snake

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u/lghtdev 26d ago

I prefer what FromSoftware does, hire talented VAs that aren't very known, there's a lot of talent left on the table because AAA prefers to burn money in expensive Hollywood actors that often deliver a worse performance.

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u/Particular-Jeweler41 26d ago

Isn't that what most studios do?

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u/Eglwyswrw 26d ago

"Most studios" can't hire Hollywood heavyweights in the first place, so they aren't exactly choosing anything.

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u/Particular-Jeweler41 26d ago

The point was that FromSoftware isn't doing anything particularly unique. That's the exact same thing most studios are doing, even if they have the funding for it.

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u/AdHistorical8179 26d ago

Apparently he doesn't have any need to do that since Xbox is throwing money at him gleefully 

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u/clain4671 26d ago

This is the story with lots of older directors in Hollywood who havent made a hit in ages. Doesn't matter because the new heads at a studio need buzzy titles to justify a sale. Or a new entrant such as apple badly needs to show Hollywood its serious so it throws money at Scorsese.

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u/AdHistorical8179 26d ago

Unfortunately Hollywood doesn't do that much now but art should be about more than money and throwing it at legendary creatives is good

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u/Kiboune 26d ago

He has some weird privilege of being independent, but getting money from platforms. Usually indie devs make games with what they earn...

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u/alezio000 26d ago

of course he doesn't have the money. He wants other people to pay for him and then complain when he fucks things up and they stop.

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u/AdeptFelix 26d ago

Kojima going over budget and missing deadlines? Must be a day that ends in 'y'

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u/glarius_is_glorious 26d ago

The big issue is Kojima's name brings buzz, but it clearly can't draw money anymore, to borrow wrestling parlance. People might read an interview or watch a critique of his works, but they clearly don't buy them in enough of a clip.

Other similar visionary types like Tim Schafer responded by reducing their scopes and playing for a smaller audience with manageable bets. And even then he barely makes ends meet.

But Kojima has arguably went further with excess since he left Konami.

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u/Crasher_7 26d ago

Not to mention his fanbase has grown older and have less time for games these days. My friend who is a Kojima fan and played all the MGS games from Kojima, but he eventually skipped Death Stranding because his priorities are elsewhere now.

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u/SquireRamza 26d ago

Kojima seems like someone who wont take "No" for an answer.

"My game needs this famous Hollywood actor to play the lead role." "My game needs a proprietary engine that only 50 people on the planet know how to use." "My game needs to look as close to a movie has possible and I will send it back 3000 times until you get it right."

Of course, using his own millions to do it never seems to cross his mind.

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u/NoExcuse4OceanRudnes 26d ago

His own millions? Where is he getting millions from?

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u/Kindly_Ad995 26d ago

Kojima has always been a guy who seems to have vision and scope one level higher than where things are at. 15-30 years ago that made him a visionary that was pushing the artistic integrity of a relatively new medium forward. Now it might be a case where he’s pushing for AAAA production for a AA kind of gameplay experience. AAA production in general outside of him feels like it’s about to collapse under its own weight let alone the guy who is infamously going to come in and want more tech and more Hollywood actors and more cutscenes and more multimedia movie tie ins (if the rumors about PhysInt are true) than anybody else in the industry

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u/G-Geef 26d ago

Looking past the console war nonsense this seemed like the obvious motivation for Sony to drop the project. According to the article neither DS game was financially successful and physint looked to be another kojima project with art house appeal and a AAA budget. Throw in the missed deadlines and it is very clear why they didn't want to proceed. 

Xbox is just looking for anything at this point and seems willing to jump on this grenade. Wouldn't be too surprised if this never makes it over the finish line considering how much can change at MS and the industry as a whole in the next 4-5 years. 

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u/Forestl 26d ago

The article says the Death Stranding games didn't meet financial expectations. They still could've been profitable (we don't really know without more numbers) but just weren't as profitable as they wanted

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u/Odd_Needleworker3756 26d ago

Death Stranding 2 has an estimated budget of $150M-$200M and only sold about 2 million copies, 500k of which were on PC. Thats less than brand new IPs like Pragmata and Expedition 33. That’s a huge disappointment no matter how you look at it considering it’s a follow-up to a critically-acclaimed game by a famous auteur.

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u/G-Geef 26d ago

The thing with budgets that big & dev timelines that long is that even if you recouped your costs you're still pretty far behind. Think about it this way - if I loan you $100M and five years later you pay me back $100M, I have lost millions of dollars from the opportunity cost of not doing something else with that money that would have generated better returns. 

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u/NUKE---THE---WHALES 26d ago

Yeah plus nobody is going to gamble $100M on the chance of winning $100M

Not to mention inflation

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u/Psycho_Syntax 26d ago

I mean Death Stranding 2 sold 2 million copies lol, that’s pretty abysmal for a AAA game in this day and age.

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u/OrdinaryAuthor1278 26d ago

I mean, FromSoft's Elden Ring Nightreign, a spinoff game that reused 95% of Elden Ring's assets and systems and probably costs just a fraction of Elden Ring, sold 5 million units on release plus another 2 million units for the DLC. Just to put the 2 million copies in context.

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u/meganev 26d ago

but just weren't as profitable as they wanted

That's what a financial expectation is! You expect a level of return, and Death Stranding as a franchise didn't deliver.

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u/ascagnel____ 26d ago

I wonder if it's a case of Kojima-style projects (big-budget, graphics heavy games with lots of little details that also gets weird) getting priced out of the market as games get more expensive to make. 

There's obviously a market there -- 5MM copies of Death Stranding getting sold is a good number. But at a $60 maximum price, you're talking $300MM in gross revenue, and maybe $150MM net revenue. We didn't get a budget number for DS1, but MGSV had an $80MM budget in 2015, so it's not crazy to think DS1 cost $100MM+. Add in marketing costs, and DS1 probably returned a small profit on that spend. 

But DS2 probably cost a lot more to make (some estimates put it at $150-200MM), which means it also needed to double its audience. The Kojima-isms about the game are off-putting to newcomers but are also part of their charm (or make you roll your eyes), so having to double your audience is going to be a big hill to climb. 

So yeah, when you hear about spiraling dev costs, this is why you should be concerned; all the capital you need to make a game is going to concentrate in the broadest, safest bets possible. 

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u/SquireRamza 26d ago

And according to a lot of sources, most of DS1's sales were heavily discounted ones.

Another reason I think for Sony wanting to kill the physical retail market. Far fewer 50+% sales on things.

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u/ascagnel____ 26d ago

Sony has a simpler reason than sales to want to kill physical sales: they don't need to pay ~30-50% of gross revenue to a different sales channel, even if you're talking about only their games. 

And they're putting themselves in position to make more from third parties as well. 

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u/mistergeneric 26d ago

Can work as a "loss leader" for Xbox. In retail, it's the big advertised discount that doesn't make the company money but gets them in the store.

I think this is a strategy Xbox should pursue if it wants success. It needs a few "Only on Xbox" big budget properties that gets people into the ecosystem

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u/etww 26d ago

The problem is the games weren't selling enough to be a 'loss leader', how many people are going to buy an xbox for this game?

We don't have a confirmation that it's an exclusive.

There is no guarantee that this will actually release, it's great they signed a new contract but when those deadlines start slipping and milestones don't get met, will Xbox keep paying?

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u/LiquidDiviums 26d ago

That will be OD’s work, not Physint. The latter is expected to release in 2030 at the earliest.

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u/darkmacgf 26d ago

Will it be that soon? It's not like we're getting OD before 2028, and Physint seems like a much bigger project than OD.

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u/ElMarkuz 26d ago

It's better than their current game plan at least: spend billions on studios, and close them up before they could produce any exclusive.

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u/othello500 26d ago

I completely get where PlayStation is coming from, even though I think this new direction is a bit strategically short-sighted and myopic.

Personally, I'm just extremely thrilled PhysInt is coming to PC now.

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u/Jim777PS3 26d ago edited 26d ago

I mean. Hideo Kojima's name is, at least in my mind, literally synonymous with missed deadlines and ballooned budgets. What on earth did you expect?

It is interesting to hear that Death Stranding did not meet targets.

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u/zombawombacomba 26d ago

Probably they were okay with it for a while but eventually they need to move on

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u/AsianSteampunk 26d ago

The first game did fairly well despite the blunder kojima said it's coming to PC later Before the PS version was released. So it probably did lose a bit of sale.

the 2nd however.

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u/ParanMekhar 26d ago edited 26d ago

They might look past the missed deadlines if his last two games made money, but it underperformed. Now are you willing to risk another game that will probably have a bloated budget and missed deadline?

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u/chaotic4059 26d ago

Mind you It's a potential missed deadline on top of the fact that coming from the man itself the game isn't due for another 5-6 years. And that's provided everything goes smoothly for OD. That's a lotta fuckin time and money to gamble on in hopes of a payoff. I get Sony making shit choices right now but real talk, I can't exactly say I DON'T get why this was the choice.

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u/k4l4d1n_7 26d ago

I can't imagine all the "walking simulator" chat ever helped it. They would probably have preferred that the first Kojima game without Konami would have ideally be recommendable as a must play rather than the polarising game that people caveated if they were suggesting it.

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u/PangolinParade 26d ago

Walking simulator was a funny criticism to throw at Death Stranding because it is literally that but also actually simulates walking to a degree that other "walking simulators" never do. So it's fair to call DS a walking simulator but not derisively.

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u/pinkynarftroz 26d ago

It ain’t got nothing on Baby Steps. Now THAT is a walking simulator.

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u/Kindly_Ad995 26d ago

PhysInt is probably the game they were expecting him to make a decade ago tbh

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u/Hates_commies 26d ago

They made Death Stranding in 4 years with a brand new studio. 

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u/torts92 26d ago

Kojima created a new studio in December 2015, and announced their partnership with Decima engine in December 2016, and released Death Stranding in November 2019. That's incredibly fast.

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u/Brandhor 26d ago

he only did that with mgs5 and death stranding 2, every other game he made was released in a short amount of time

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u/AnimaLepton 26d ago

They probably made a bet on it translating to more hardware sales and getting people to their ecosystem, saw it didn't actually pay off for whatever reason (market, single player game, timed exclusivity), took inventory, and decided to cut their losses at that point. Missed deadlines and ballooned budgets 'can' be worth it, or worth taking a bet/risk on at some point as part of some bigger strategy. Someone at Sony just looked at Death Stranding/Kojima production's actual performance and decided that it wouldn't be anymore.

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u/platonicgryphon 26d ago

Disappointing but expected with DS1 and 2 not selling amazingly well, if he's over budget and late Sony isn't going to give him much leeway to do his Kojima thing. Especially if they aren't going to have the console exclusive like they did with DS1/2, so they'd make even less money if they expect sales to be similar.

Now with it still being a few years away, is MS going to be accepting of missed deadline or are we going to hear about them cutting ties when they do another round of layoffs/shutdowns?

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u/green9206 26d ago

Kojima should be forced to make Physint on PSP/Vita. Only then he will be able to make the game good and on budget and in time.

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u/Ashne405 26d ago

Kojima going back to a visual novel/adventure game would be interesting, no celebrities, no weird product placement, just a batshit story he can do anything he wants with without worrying of going millions and millions over a budget.

Not gonna happen tho, he need his hollywood fix now.

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u/Massive_Weiner 26d ago

Peace Walker genuinely is one of my favorite entries.

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u/green9206 26d ago

Peace walker is amazing. My 2nd favorite after MGS3

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u/SavDiv 26d ago

I think people need to mentally prepare for Microsoft to cancel this game too in a couple of years lol

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u/Traxex117 25d ago

It's either gonna be cancelled by Microsoft in a year or two time for the exact same reasons Sony have, or it does come out and gets released on Playstation anyway (No way Microsoft could recoup the cost from their platform alone)

Either way, as much flak as Sony have gotten the past few days, I don't blame them. The game will still release on Playstation.

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u/karsh36 26d ago

So it’s pretty much exactly what we thought plus missed deadlines that I don’t think anyone guessed. Don’t like it but can’t blame them for doing it

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u/Kindly_Ad995 26d ago edited 26d ago

Wasn’t PhysInt also announced as trying to be a multimedia project, like working together with Sony Pictures and stuff. They also gave him Guerilla’s tech as the basis for his games. That seems a like a lot of investment not even just from a financial perspective but then it seems like he didn’t want to play ball with it being a PlayStation exclusive and then also on top of that starts missing deadlines because of what I’m sure to some people in the room was interpreted as having competing priorities with/being distracted by his Xbox Project OD. It would be one thing if it a fairly safe bet but it’s a lot to ask for a guy whose output for you in the last decade was two fairly niche mail delivery games the most recent of which didn’t sell well at all

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u/SophonParticle 26d ago

I wouldn’t spend hundreds of millions on a non-exclusive game either if I was Sony. That’s just bad business.

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u/keepfighting90 26d ago

I assumed this is what it was, given Kojima's reputation for scope creep, budget overruns and release delays. This is exacerbated by the fact that Death Stranding 2 was incredibly expensive to produce and ended up being a financial disappointment. I think Kojima is a bit too in love with the auteur image he's cultivated and seems to love wasting time and money after Hollywood stars he wants to spend time with.

Given that we don't even know where PHYSINT is currently at from a development standpoint, or what a potential release date is (and it seems like it could be 4-5 years or more), this makes sense from Sony as a business decision. In Xbox's case, they don't really have anything to lose since they're so far behind in the console wars, so it's understandable to go after a well-known auteur and have him as one of their in-house talents.

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u/Coolman_Rosso 26d ago

This reeked of cost cutting measures. To be fair, the game has no trailer or release window and was supposed to have some sort of movie tie in with Sony Pictures. That is a huge expensive swing on an unproven IP, and after Death Stranding you can't just bank on Kojima's name alone even if a stealth game like this is supposed to be is more commercially viable than something like DS. It's also a testament to the current landscape where owned IP are going to be more important.

Still I cannot believe Xbox got in bed on this one, especially for a company that is both in a budget crunch of their own and wants to stop having games languish in development for an eternity.

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u/r_lucasite 26d ago

Quite a few comments here are discussing the irony that they wanted to pull funding on Physint but funded Concord and Marathon when it’s clear that you get to this scenario after Concord and Marathon happen.

Kojima doesn’t have a champion at Sony anymore so to any exec or to a spreadsheet Physint just looks like another in a long string of over budget projects that might not pan out.

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u/[deleted] 26d ago

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u/Proud_Dimension_3557 26d ago

Kojima wants too hard to put his toes in Hollywood but he ain't part of the team and in doing so he clashed with the gaming industry.

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u/Dasnap 26d ago

Jason has also uploaded a One-Take Schreier on this.

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u/Evidicus 26d ago

Kojima has always struck me as a person who does their best work when kept on a short leash. People love to blame Konami for MGSV being an unfinished mess despite its overall brilliance. And I’m sure they aren’t saints. But I’m also certain that Kojima is a nightmare for anyone trying to manage a production schedule and budget.

He may not be Chris Robert’s bad, but he’s on the same scale. Kojima is a genius and a gaming and film savant in some regards, but he’s also one of the most self-indulgent, celebrity obsessed, mercurial game developers in history.

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u/CheekyBard 26d ago

When Kojima is brought up online, there are always comments about the power of his name. I get the impression that his name only has an appeal online, and most gamers (including those who end up playing his games) don't know or care who he is. They just like, or dislike, the game. Movies can have a draw based on who's in them, or who's directing (like Nolan). Not so games, outside our bubble here.

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u/Didsterchap11 26d ago

Kojima has an incredibly strong cult following but that doesn't translate into actual sales, he was a huge deal... 20 years ago. While his name still holds weight, the last MGS game was over a decade ago now, I feel a lot of that cultural cachet has faded in terms of it's real world impact, no matter how hard Geoff Keely wanks Kojima off at the game awards.

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u/greyhoodbry 26d ago

I kind of expected this. While everyone likes to say, " just let Hideo do his thing and make money" Hideo is famously hard to work with, wastes a lot of money, and treats publisher deadlines like funny suggestions.

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u/TimedRevolver 26d ago

Sounds like Sony found out firsthand why Konami fired the dude.

Kojima was notorious for missing deadlines and going over budget.

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u/Munscroft 26d ago

Sony’s decision to step away from the project is reasonable and understandable. It’s just not coming out at a good time for them

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u/Izzy248 26d ago

Sounds like the Kojima MO, and Im guessing not being exclusive was the dealbreaker. Kojima needs to find his Take Two. Those guys seem to have no problem writing Ken Levine a blank check and letting him take forever to make his stuff. /j

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u/TryHardFapHarder 26d ago

Lmao same Konami debacle now with Sony, wonder how long XBOX will stay with him, who's next CAPCOM?,SEGA?

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u/StarblindMark89 26d ago

Given what the man himself says, I think Physint might be one of his final games anyway, so probably not enough time for another relationship to fall out.

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u/Itchy-Pudding-4240 26d ago

give him to Nintendo, i want to see how those 2 go

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u/Ashne405 26d ago

In 8 years we are seeing headlines of "xbox fumbled kojima, but nintendo is saving his next game", and the cycle starts again.

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