Hideo Kojima’s Xbox console-exclusive horror game, OD, is reportedly safe amidst reports and rumors of studio closures, layoffs, and game cancellations at Xbox loom.
According to a report from IGN, a source familiar with Microsoft’s Xbox plans has stated OD remains in development at Kojima Productions and will still be published by Xbox.
Not much is known about OD, but it was announced during an Xbox showcase in June 2022, with only a few brief glimpses since. It is set to star three actors– Sophia Lillis, Hunter Schafer, and the late Udo Kier–and is being made in collaboration with director Jordan Peele.
Kojima said in a recent interview with Entertainment Weekly that while pitching OD, most people didn’t understand the concept. Former Xbox CEO Phil Spencer, however, understood, resulting in a partnership between Kojima Productions and Xbox.
When OD will release is unknown, but news that its development will continue comes as Xbox seems poised to undergo a painful transition under new CEO Asha Sharma. It was just earlier today that 007 First Light developer IO Interactive announced layoffs after it was confirmed by Bloomberg that Microsoft had pulled funding for the studio’s upcoming Project Fantasy game.
In a statement, Microsoft said it would not be “reducing our overall investment in games,” but changing “where we’re investing and the kinds of projects we’re backing.”
A number of Xbox studios and games are reportedly on the chopping block, with the possibility of some being spun out from under Xbox, being sold to other companies, or being closed entirely. One game said to be in danger of cancellation is Marvel’s Blade, from developer Arkane. Blade was announced in 2023 but no gameplay has been shown. In a quote from May, Bethesda’s Todd Howard said he recently saw the game and that Arkane was doing a “really, really great job.”
According to a report from The Verge, at least five studios, including Arkane, Compulsion Games (which has already reportedly seen layoffs), Double Fine, Ninja Theory, and Undead Labs, are all in danger. Mass layoffs are said to be coming around July 6, according to the report, and will hit “most parts of Xbox.”