Kojima Productions disputes reports the studio is in trouble
Kojima Productions responded to recent reports about financial and operational troubles by saying the studio is “in a healthy, profitable state” and that its relationship with PlayStation remains strong. The statement follows reporting that Sony dropped funding for Hideo Kojima’s Physint and that the project will instead appear on Xbox, which prompted industry speculation about missed deadlines and budget issues.
Why It Matters
The clarification matters because it counters media accounts linking the loss of Sony funding and reported weak sales of Kojima’s past titles to an imminent studio collapse, amid a broader wave of closures and project cancellations in the games industry.
Key Facts
- Source publication: The Verge
- Author: Terrence O'Brien
- Date: Sep 20, 2026
- Studio statement: Kojima Productions said it is "in a healthy, profitable state."
- Relationship with PlayStation: Company said its relationship with PlayStation "remains strong."
Kojima Productions has disputed reports that the studio is in financial distress, issuing a public statement saying it is currently "in a healthy, profitable state." The clarification came after news that Sony would not continue funding Hideo Kojima’s new project, Physint, and that the game will instead be released on Xbox. Bloomberg had reported that Sony’s decision was influenced by several factors, including missed deadlines, budget and profitability concerns, and the project’s timed exclusivity. Those reports, together with media coverage suggesting disappointing sales for Death Stranding and its sequel, prompted speculation that Kojima Productions could face severe cuts or even closure. Hideo Kojima himself told IGN he was worried about the studio’s future given a broader industry context in which multiple studios have closed and projects have been canceled. Kojima said he feared losing a contract could force layoffs or exhaustion of the studio’s cashflow, which contributed to public concern about the company’s prospects. Kojima Productions’ statement pushed back on that narrative, asserting both its profitable position and a continuing strong relationship with PlayStation. The company did not provide additional financial details in the statement; the surrounding reporting and Kojima’s comments have left industry observers watching how the studio and its partners proceed with Physint’s platform change.
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