Microsoft’s Xbox is reportedly paying “a fraction” of the $400 million budget that Hideo Kojima originally quoted Sony for his long-awaited stealth title Physint, according to sources cited by multiple outlets over the weekend. The revised figure has quickly replaced the widely circulated number that first emerged from The Game Business’s Christopher Dring, who now admits the reported sum was inflated. Physint, Kojima Productions’ action-espionage game and spiritual successor to Metal Gear Solid, was originally announced as a PlayStation project before Sony reportedly abandoned the deal in June after the project exceeded its budget and missed its deadlines.
The story’s origins trace back to Dring’s podcast, where he stated that Xbox was “signing Kojima for a project often referred to as Physint with a budget around $400 million.” He added that his sources had heard figures ranging from $300 million to $600 million, with $400 million being the number most commonly bandied around. However, Dring later walked the claim back on X, clarifying that Xbox is likely paying “quite a bit less” than what Kojima had initially asked of Sony. Bloomberg’s Jason Schreier echoed this sentiment, noting that his own sources described Microsoft’s negotiated figure as “significantly less than this,” while Windows Central’s Jez Corden went further, asserting that Xbox is paying only a “fraction” of the original sum — though none of the sources disclosed an actual figure.
A Second Chance for the Metal Gear Successor
Physint represents a pivotal moment for Kojima Productions, whose roster has been defined by the Metal Gear and Death Stranding franchises. The game was first revealed as a PlayStation title after Sony reportedly spent months negotiating with the studio. According to reports, the publisher ultimately pulled its funding after the project ballooned past its budget and slipped its schedule. The decision, made in June, left the game in limbo until Kojima was able to convince Xbox to pick up the Metal Gear successor and continue both funding and publishing it.
When asked recently about the shifting landscape of his publishing deals, Kojima said: “I think all of that will be announced at a later time.” He added, “I’m not sure yet, and I can’t really say.”
Hideo Kojima
Beyond the headline number, the Xbox deal reportedly comes with meaningful benefits for the studio. It includes movie and TV licensing rights for Physint, alongside improved terms for Kojima’s other in-development project, the horror game OD. The financial terms also reflect a broader strategic shift at Microsoft, which is once again embracing first-party exclusives. Xbox has recently confirmed that titles such as Gears of War: E-Day and Clockwork Revolution will not be released on PlayStation. Yet the studio has not fully closed the door on cross-platform releases, as games like Forza Horizon 6 and Fable remain in the works for PS5 — leaving fans with cautious optimism that Physint could follow a similar path.
Looking Ahead
The revised budget comes at a turbulent time for Microsoft’s gaming division. Yesterday, we reported that Xbox CEO Satya Nadella praised the company’s ongoing “streamlining” just days after another 268 layoffs were announced, alongside what appears to be the impending closure of British studio Ninja Theory. The restructuring has also reshaped the wider Microsoft portfolio, with Obsidian moving under Bethesda’s control, Playground and Turn 10 merging, Undead Labs going independent, and Rare, World’s Edge, and Halo relocating under Activision’s control.
As Xbox recalibrates its priorities amid these organizational changes, the fate of Physint remains tied to both the studio’s creative momentum and Microsoft’s evolving publishing strategy. Kojima has indicated that further details about the game’s future will be revealed at a later time, and with the deal now secured at a more modest price point, the Metal Gear successor appears to have found a new home — for now.
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