Xbox To Publish Hideo Kojima’s Upcoming Espionage Game After PlayStation Steps Away

Xbox CEO Asha Sharma said the partnership reflects creators’ freedom to choose how their ideas reach audiences: “We’re honored that Kojima-san has chosen XBOX,” adding that his effort to challenge conventions matches the creativity Xbox wants to support.
PlayStation did not give a specific reason for ending its involvement with PHYSINT, describing the move only as a decision made “after careful consideration.”
PlayStation said its relationship with Kojima and Kojima Productions followed “three decades of industry-leading, genre-defining creative cooperation,” and that it expects continued close collaboration with the independent studio.
The Xbox-Kojima discussions reportedly began after Asha Sharma became CEO and included in-person meetings about working across platforms and developing intellectual property for television and film; Kojima Productions is already developing a Death Stranding film with A24.
OD has no announced release date, while Death Stranding 2 remains a PlayStation exclusive for now; the original Death Stranding later came to Xbox, and Kojima subsequently reacquired the Death Stranding rights from PlayStation.
Microsoft's Xbox will publish Hideo Kojima's upcoming stealth-action game PHYSINT after PlayStation unexpectedly canceled the project in mid-June 2026. The deal marks a stunning reversal for a title originally announced as a PlayStation exclusive in January 2024 and shifts one of gaming's most celebrated creators to Xbox. Xbox CEO Asha Sharma said the partnership reflects her commitment to supporting bold creators: "We're honored that Kojima-san has chosen Xbox. His ambition to challenge conventions reflects the kind of creativity we want to support."
The expanded partnership extends beyond PHYSINT to include Kojima's horror title OD—co-created with filmmaker Jordan Peele—and potential film and television adaptations. Kojima Productions revealed that Sony's cancellation notice came without warning, giving the studio three months to find a new publisher before Xbox stepped in. PlayStation described the split as a decision made "after careful consideration" but stressed that its three-decade relationship with Kojima remains strong.
PHYSINT was announced during a PlayStation State of Play broadcast in January 2024 as a collaborative action-espionage title with Kojima Productions. The game was positioned as a spiritual successor to Metal Gear Solid, tapping into the creator's legendary 30-year history with the PlayStation brand. But in mid-June 2026, Sony Interactive Entertainment issued a formal cancellation notice to Kojima Productions without public announcement, shocking the independent studio and forcing an immediate search for an alternative publisher.
Hideo Kojima disclosed the surprise cancellation publicly on X (formerly Twitter) on September 10, 2026, revealing that Sony's abrupt pullout forced his team to negotiate urgently with other partners. The move contrasts sharply with PlayStation Studios' diplomatic framing of the split as "careful consideration," exposing behind-the-scenes friction. Kojima Productions spent three months securing Xbox as a publishing partner and rebuilding confidence in the project's future.
Xbox CEO Asha Sharma, who took over the division after former head Phil Spencer retired earlier in 2026, has been aggressively courting top-tier creators as part of a "reset and rebuild" strategy. The PHYSINT deal signals that Asha Sharma views publishing proven independent projects as a competitive advantage against PlayStation. Xbox emphasized that the partnership reflects a commitment to letting creators choose where their work reaches audiences, positioning the platform as more flexible and creator-friendly than its rivals.
The negotiations reportedly included in-person meetings between Asha Sharma and Kojima Productions about expanding beyond gaming into film and television. Kojima Productions is already developing a Death Stranding film with A24, demonstrating the studio's cross-media ambitions. Xbox sees the partnership as an entry point into intellectual property development across multiple formats, not just console gaming.
Xbox will publish OD before PHYSINT arrives, giving the horror title co-created with filmmaker Jordan Peele a head start in the release schedule. Neither game has an announced launch date, but both titles are now firmly in Xbox's pipeline. Meanwhile, Death Stranding 2: On the Beach remains a PlayStation exclusive at launch, though Kojima Productions has a history of bringing its exclusives to other platforms after initial windows expire.
The Kojima-Xbox deal reflects a broader shift in how creators negotiate with publishers. Kojima Productions previously reacquired the rights to the original Death Stranding from Sony and later brought it to Xbox, establishing a precedent for independent ownership and multi-platform strategy. That success likely emboldened Kojima to walk away from PlayStation and bet on Xbox's commitment to his vision—a gamble that may reshape how other major creators approach platform partnerships.
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