The next espionage thriller from Metal Gear Solid creator Hideo Kojima won’t be published by PlayStation. In a surprise twist, the PS5 maker has dropped the upcoming game and Xbox has swooped in to sign a deal to publish it instead. “We found in Xbox a partner with whom we share a common vision for the future, and we have decided to team up with them once again,” the Death Stranding 2 director wrote on X on September 9.
In a truly unlikely chain of public announcements, the news began with the PlayStation account tweeting that it was breaking up with Kojima. “After careful consideration, we have made the difficult decision to step away from collaborating with KOJIMA PRODUCTIONS on its project PHYSINT,” the brand tweeted at 10:30 p.m. ET.
An update from PlayStation Studios: After careful consideration, we have made the difficult decision to step away from collaborating with KOJIMA PRODUCTIONS on its project PHYSINT. We continue to have great admiration for Hideo Kojima’s vision for the game.
Our relationship…
— PlayStation (@PlayStation) September 10, 2026
Despite Sony claiming “our relationship remains strong,” Xbox CEO Asha Sharma tweeted one minute later that Physint would now be published by Xbox. Microsoft’s gaming division is already partnering with gaming’s number one auteur on the amorphous horror project OD, which survived the tech giant’s latest bloodbath. “A big moment for Xbox,” Sharma added, putting her stamp on her first major publishing deal since taking over.
PHYSINT and OD! Proud to build both with @HIDEO_KOJIMA_EN in Japan. A big moment for XBOX. pic.twitter.com/X3JG0lIB9F
— ASHA (@asha_shar) September 10, 2026
Then Kojima himself joined the late night group chat with an unusually candid view of the events leading up to the swap. “In mid-June of this year, we unexpectedly received notice from PlayStation Studios that they would cancel the PHYSINT project,” he wrote on X at 10:39 p.m. ET. “PHYSINT is an important project both to me personally and to KOJIMA PRODUCTIONS.”
He continued, “Determined to keep the project alive, we have spent the last three months searching tirelessly for a new partner. In the course of seeking advice and pursuing negotiations with people across many fields, we found in XBOX a partner with whom we share a common vision for the future, and we have decided to team up with them once again.”
As confirmed earlier through our official channels, in mid-June of this year, we unexpectedly received notice from PlayStation Studios that they would cancel the PHYSINT project. PHYSINT is an important project both to me personally and to KOJIMA PRODUCTIONS. Determined to keep… pic.twitter.com/rQqhxAnb7N
— HIDEO_KOJIMA (@HIDEO_KOJIMA_EN) September 10, 2026
An uncharacteristically abrupt blog post about the deal went up on Xbox Wire as well. Sharma said the new partnership “will also extend beyond games, with XBOX and KOJIMA PRODUCTIONS collaborating across film and television to bring new stories to broader audiences.” The Xbox CEO previously put forth the goal of a billion users engaging with Xbox entertainment per day, and a recent report from Puck claimed Microsoft was shopping around a $300 million licensing rights package to turn adapt franchises like The Elder Scrolls, Diablo, and others into movies and TV.