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Sony Reportedly Ditched Hideo Kojima's Physint Following Missed Deadlines, Bloated Budgets, and Death Stranding 1&2 Missing Sales Expectations
Bloomberg said Sony worried PHYSINT would miss deadlines, run well over budget, and deliver limited returns from Kojima Productions.
On Thursday, September 10, 2026, Sony announced it had ended its collaboration with Hideo Kojima on the project PHYSINT, shocking the gaming community with the unexpected partnership dissolution.
Bloomberg reports that Sony canceled the title due to mounting budget concerns and reportedly missed development deadlines, with the project years away from completion despite escalating costs.
Commercial performance of Kojima Productions' previous two games, Death Stranding and Death Stranding 2: On the Beach, failed to meet Sony's revenue expectations, prompting financial dissatisfaction.
Sony sought to avoid further investment in titles that would eventually launch on competing platforms, as Kojima Productions retained franchise ownership, limiting permanent control over the intellectual property.
These claims remain unofficial, as Sony has not publicly confirmed Bloomberg's reasoning; the studio continues to express admiration for Hideo Kojima's vision for the game despite the severed partnership.