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PlayStation has reportedly ended its partnership with Kojima Productions Physint, citing concerns over budget, potential profitability, and exclusivity. According to sources familiar with the project, Physint, announced in 2024, was behind schedule and expected to exceed its budget. The announcement came just months after it was revealed that Death Stranding and its sequel, On the Beach, failed to meet PlayStation's revenue expectations.

PlayStation executives stated they were reluctant to invest hundreds of millions of dollars in another game from Kojima Productions that would become a timed exclusive. Death Stranding, released exclusively on PlayStation in 2019, later became available on PC and Xbox, while its sequel followed a similar timeline. Hideo Kojima revealed on Thursday that his studio was notified on June 20th that PlayStation would cancel Physint.

PlayStation maintained that while the decision was difficult, the relationship with Kojima Productions remained strong and they look forward to continued collaboration. Xbox quickly stepped in to replace PlayStation as Kojima Productions' new partner, having already partnered with them on the horror title OD. Kojima Productions' leadership expressed their commitment to expanding their relationship with Xbox beyond OD, with Kojima stating they remain dedicated to redefining the action-espionage genre.