Contrary to previous claims that Microsoft allocated $400 million to Hideo Kojima’s anticipated stealth-action project “Physint,” new information from industry insiders now confirms that the true budget is much smaller.
Last Friday, the online community began speculating over the financial backing of Physint after Christopher Dring, who leads The Game Business, mentioned on his podcast that the investment was “around $400 million.” His comments linked the title—Kojima’s planned spiritual successor to Metal Gear Solid—to an investment figure that quickly made rounds across various gaming outlets, fueling debates about Microsoft’s level of commitment.
Budget Details Clarified by Multiple Sources
Soon after the initial excitement, Dring took to X (formerly Twitter) to correct the narrative, emphasizing that fresh contract discussions reveal a sum “quite a bit less than” the number first discussed. He clarified that budget numbers circulating in the $300 million to $600 million range—and most often cited at $400 million—actually came from early Sony negotiations, not Microsoft’s signed deal.
Additional perspective was offered by Bloomberg’s Jason Schreier, who wrote on ResetEra that insiders close to Microsoft’s arrangement say the true budget is “significantly less” than what had been reported. Jez Corden from Windows Central reinforced this, stating the budget Microsoft arranged is a mere “fraction” of $400 million, though he didn’t specify the exact amount.
Physint’s Journey: Sony to Microsoft
The original plan from Kojima Productions was to release Physint solely on PlayStation. Negotiations with Sony began, and the two sides spent months developing the collaboration. The agreement fell apart when the project’s scale exceeded Sony’s projected budget and progress lagged behind schedule, leading Sony to end support and withdraw funding in June.
After Sony pulled out, Kojima Productions secured Microsoft as its new partner. Thanks to this deal, development on Physint continues and Microsoft also agreed to bolster the studio’s upcoming horror title, OD. Reports indicate Microsoft’s contract not only handles development funding but also grants Physint movie and TV adaptation rights, aligning with a strategy to turn the IP into a multimedia franchise.
Platform Availability Still in Question
Whether Physint will remain exclusive to Xbox is still undecided. Microsoft has recently adjusted its policy on exclusives: while some big games like Gears of War: E-Day and Clockwork Revolution are confirmed not to be coming to PlayStation, plans still exist for others such as Forza Horizon 6 and Fable to launch on PS5.
As for official word, Hideo Kojima has publicly stated that announcements about which platforms Physint will release on will arrive in the future, explaining, “I’m not sure yet, and I can’t really say.”
Xbox Undergoes Organizational Changes
The situation unfolds during a time of major restructuring at Xbox. Satya Nadella, Microsoft CEO, publicly praised Xbox chief Asha Sharma’s management recently. Meanwhile, the company is grappling with 268 job cuts and the impending shutdown of Ninja Theory, the acclaimed UK developer behind Hellblade. Organizational adjustments also include Obsidian being folded into the Bethesda group, the merging of Playground Games with Turn 10, and Rare, World’s Edge, and Halo now being overseen by Activision. Undead Labs is set to become an independent studio.
With anticipation for Physint growing, industry watchers await further updates from Microsoft and Kojima Productions regarding the game’s fate and whether it will ultimately expand beyond the Xbox ecosystem.