Sony’s decision to reportedly step away from Physint, an ambitious next-generation action-espionage game from renowned Metal Gear Solid creator Hideo Kojima, has sparked debate over why the company chose to abandon the project.
The game will reportedly remain in development, but with Microsoft’s Xbox now backing the project. The move represents a significant win for Xbox as it looks to strengthen its position in the next generation of gaming.
Analysts believe the performance of Kojima Productions’ latest title, Death Stranding 2: On the Beach, may have influenced Sony’s decision.
Dr Serkan Toto, CEO of Japanese games industry consultancy Kantan Games, said the sales performance of Death Stranding 2 may have raised concerns at Sony.
Toto said Kojima’s games benefit from a strong platform-marketing effect, but suggested that the apparent drop in performance between the first and second Death Stranding titles may have “spooked” Sony.
Official sales figures for Death Stranding 2 have not been released by Sony or Kojima Productions, making a direct comparison with the original difficult. However, analytics firm Alinea Analytics estimates that the sequel has sold around 2.5 million copies.
The original Death Stranding sold five million copies by March 2021 and had reached around 20 million players by March 2025. That figure includes people who accessed the game through subscription services or claimed it through free promotions.
Kojima Productions said in July that the Death Stranding franchise had reached 27 million players across both games.
Alinea Analytics has suggested that sales of Death Stranding 2 have slowed considerably, with several discounts reportedly failing to significantly boost demand. The analysis also indicates that the sequel’s revenue remains below that of its predecessor.
Analysts say the figures could have raised concerns about the financial viability of another large-scale Kojima production. Both Death Stranding games involved lengthy development periods, substantial budgets and high-profile Hollywood actors.
Physint was already expected to be an even more ambitious project. Kojima previously estimated that the game could still be five to six years away from completion, while reports have also suggested that some form of film production could be connected to the project.
Alinea Analytics analyst Rhys Elliot said Sony’s decision could make financial sense, despite the negative perception among PlayStation fans.
Elliot estimated that the first Death Stranding cost around $100 million to develop, while the sequel may have cost between $150 million and $200 million. He argued that, after development and marketing costs, the franchise may have only just broken even.
He also pointed to recent challenges facing PlayStation Studios, including the cancellation of Concord and weaker-than-expected performances from several other major releases.
The decision to step away from Physint could therefore save Sony millions in future development costs. However, losing a high-profile Kojima project could also carry reputational costs, particularly given the game's potential as a major next-generation title.
For Xbox, meanwhile, securing Physint could provide a significant boost to its gaming portfolio. The project is expected to be several years away, but could become an important title for Microsoft's next-generation strategy.
Elliot said the move was a major public-relations setback for PlayStation, while The Game Business' Christopher Dring described Kojima projects as more about credibility than profit margins.
With Physint now reportedly moving forward under Xbox, the shift marks a major change in the relationship between Kojima and PlayStation and could have implications for both companies' next-generation strategies.
Based on reporting by IGN