TOKYO: Kojima Productions has rejected speculation about its relationship with PlayStation following Sony’s decision to withdraw from PHYSINT.

The studio said development of the action-espionage title continues with Xbox as its publishing partner.

Sony announced on September 10 that it would step away from the project. Kojima Productions and PlayStation Studios had first announced PHYSINT in 2024.

Hideo Kojima later revealed that PlayStation Studios informed his team in mid-June about plans to cancel its involvement.

The developer then spent about three months searching for another publishing partner. It eventually reached an agreement with Xbox to continue the project.

Kojima Productions Rejects Online Speculation

Several reports linked Sony’s decision to concerns about the game’s budget, development schedule and potential profitability.

Some reports also suggested that Sony wanted permanent PlayStation exclusivity. Others connected the decision to the commercial performance of Death Stranding and Death Stranding 2.

Kojima Productions said those reports did not come from official or on-the-record sources.

The studio urged fans to treat the claims with scepticism.

It said the speculation had gone beyond the company and affected fans, creative partners and colleagues who had worked with the studio for many years.

Kojima Productions also rejected suggestions that Sony’s departure reflected a wider breakdown in its relationship with PlayStation.

PHYSINT Development Continues With Xbox

The studio acknowledged that losing PlayStation as the publisher of PHYSINT represented a serious development.

However, Kojima Productions said its financial position remains healthy.

The company also confirmed that development continues with Xbox.

The studio said its relationship with PlayStation remains strong despite the change in publishing arrangements.

That statement counters reports suggesting the project’s change in publisher had created a dispute between Kojima Productions and Sony.

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Kojima Says There Is No Dispute With Sony

Kojima has also addressed the situation directly.

The veteran game designer said he was shocked and surprised when Sony decided to withdraw from the project.

However, he rejected suggestions of an ongoing conflict between the two sides.

“We’re not in dispute. We’re not fighting with them,” Kojima said.

The comments indicate that the change affects the publishing arrangement for PHYSINT rather than the broader relationship between Kojima Productions and PlayStation.

The project remains in development, with Xbox now involved in its publishing plans.