Hideo Kojima, the renowned game designer behind the Metal Gear series, expressed shock and disappointment following Sony’s unexpected cancellation of his upcoming game, “Physint.” The decision, which was made public in early September but reportedly occurred in June, has sent ripples through the gaming community and Kojima’s own studio, Kojima Productions, based in Tokyo.

Kojima, whose independent studio employs nearly 200 people across the street from Sony’s headquarters, said he was initially left without anger or sadness but deeply concerned about the future of his team. “We’re an independent studio. That means if they can’t fund us, our studio could collapse,” he said in an interview. The cancellation came without a detailed explanation from Sony, and the company did not respond to requests for comment.

The project, first announced in January 2024, had been a joint effort between Kojima Productions and Sony Interactive Entertainment. Earlier reports suggested Sony’s withdrawal stemmed from worries over the game’s budget, missed deadlines, potential profitability, and the lack of exclusivity to the PlayStation platform. Additionally, these reports cited that Kojima’s previous titles, such as the “Death Stranding” series, had not met PlayStation’s revenue expectations. However, Kojima Productions issued a statement challenging these claims, labeling them as “unsubstantiated speculation” and affirming the studio’s healthy financial status and ongoing development of “Physint” with Microsoft’s Xbox as the new publisher.

Following Sony’s exit, Kojima quickly secured a new partnership with Microsoft, citing their existing relationship as a key factor. Xbox characterized the decision to pick up the game as an “easy call.” Despite this transition, Kojima remains deeply shaken by Sony’s withdrawal, comparing the situation to the 2015 cancellation of “Silent Hills” — a high-profile horror project he co-directed with Guillermo del Toro that was abruptly ended by his former employer, Konami.

Kojima described “Physint” as potentially the biggest-selling title of his career, with the studio already having begun early development involving the creation of storyboards, 3D models, and actor scans, including for lead star Bill Skarsgård. The game’s concept is still evolving, and the studio is experimenting with different game engines.

The cancellation has posed operational challenges for Kojima Productions, which depends on publishing agreements to sustain its business. While no layoffs have occurred, staff initially hired for “Physint” have been reassigned to other projects, including Kojima’s upcoming horror game “OD,” co-written with filmmaker Jordan Peele. Kojima emphasized the importance of retaining his team and expressed concern over the industry’s shift toward established blockbuster franchises, warning this trend could risk innovation and the survival of independent studios.

“We need to stand firm as a games industry. Otherwise, the games industry may be on the brink of extinction,” he said. Kojima also emphasized his ongoing respect for Sony, noting that despite the cancellation, his personal relationship with the company remains positive and amicable.

The postponement and realignment of “Physint” mark a significant moment for Kojima Productions, which is celebrating its 10th anniversary alongside Kojima’s 40 years in the gaming industry. Kojima’s hope is that continuing the project with Microsoft will not only preserve his studio’s future but also reinforce the viability of independent developers in a market increasingly dominated by major publishers.