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Xbox and Hideo Kojima’s Physint: Rumored 400 million budget cut

Olivia Bennett by Olivia Bennett
September 27, 2026
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Xbox and Hideo Kojima’s Physint: Rumored 400 million budget cut
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Microsoft’s gaming division has gone through a major restructuring phase in recent weeks, characterized by layoffs and the closure or sale of small studios. Under the leadership of the new CEO XboxAsha Sharma’s strategy is becoming increasingly clear: focus resources on historical series such as Fallout and The Elder Scrolls. In this atmosphere, rumors began to circulate that the latest cuts were to fund the development deal between Xbox and Hideo Kojima. Fresintis a stealth action game considered by many to be the spiritual successor to the Metal Gear Solid series, produced by Kojima himself.

character ballet

Journalist Chris Dehlin fueled the speculation, reporting in a podcast Xbox has allocated a budget of approximately $400 million for Physintthis number also clearly shows why Sony, which is in poor form, abandoned him. However, this number quickly dwindled. Bloomberg’s Jason Schreier tempered enthusiasm, saying: “I’m hesitant to get into the details of the numbers without seeing the documents or seeing the numbers. [simili]Dehlin later rescinded that statement.

A source with direct knowledge of the contract confirmed Actual investment is significantly lower. Someone did suggest a $400 million figureSee Sony and PlayStation’s original planned financial commitmentsbefore the transaction is cancelled. By comparison, Hideo Kojima’s Xbox project was reportedly budgeted for a “small fraction” of that amount.

Kojima Productions denies rumors about Physint: “Studio is healthy and profitable”

Kojima Productions denies rumors about Physint: studio healthy and profitable

However, the agreement between Xbox and Kojima Productions is not limited to video game development. The agreement actually includes TV and film licensing Updates and improvements to Physint, as well as Kojima’s own horror game OD, are also in development for Xbox.

Traditional media plays an increasingly important role in the field of video games. Give up adaptation rights to streaming platforms, e.g. Netflix or Amazon Prime Today, it has become an important tool for reducing development costs and conducting organic marketing campaigns. Given the strong cinematic imprint of Hideo Kojima’s work, Physint is a candidate for a project that could be profitable on multiple fronts. However, it remains to be seen how much flexibility Microsoft will have to give Japanese authors to ensure the high quality standards required for a work of this caliber.

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