Did Kojima Really Ask Sony for $400 Million?

Reporters are already walking back a reported $400 million budget for Hideo Kojima’s PHYSINT. The figure surfaced after Sony dropped the stealth action game and Xbox stepped in as publisher. Now multiple journalists say Xbox is paying far less, although nobody has confirmed an exact number.

How PHYSINT Ended Up at Xbox

The story began in mid-June with a Zoom call. During it, PlayStation told Kojima it would no longer fund PHYSINT. Sony and Kojima made the split public on September 10, the same day Xbox confirmed it would publish the game.

Speaking to IGN, Kojima said he received no explanation for the decision. He told the outlet, “I was shocked.” He also feared his independent studio could collapse without a publishing contract.

What Bloomberg Reported

A day after the announcement, Bloomberg’s Jason Schreier reported that Sony pulled out over budget, profitability, and exclusivity concerns. According to his sources, the project had missed deadlines and was on track to run well over budget. The commercial performance of both Death Stranding games also reportedly fell short of PlayStation’s revenue expectations.

Exclusivity mattered because Sony has stopped bringing its single-player games to PC, according to Bloomberg. Xbox, by contrast, plans to release PHYSINT on both Xbox and PC. The Xbox deal reportedly also covers film and TV rights for PHYSINT and OD.

Kojima Productions pushed back on September 20. In a statement, the studio called much of the speculation unsubstantiated and said it remains healthy and profitable. It added that its relationship with PlayStation remains strong.

The $400 Million Question

The budget figure came from Chris Dring of The Game Business, who cited roughly $400 million on his podcast. Dring later clarified that Xbox is likely investing quite a bit less than that.

Schreier weighed in on ResetEra, saying an Xbox contact told him the deal came in “significantly less” than $400 million. He added that he would not share exact numbers without documents or multiple firsthand sources. Meanwhile, Windows Central’s Jez Corden reported that Xbox is paying only a fraction of the rumored figure.

According to Corden, $400 million may instead reflect what Sony could have faced before canceling its deal. Push Square argued that such a figure would be striking, since Kojima retains ownership of the IP. No one at Sony, Xbox, or Kojima Productions has confirmed any number.

Bottom Line

Treat the $400 million figure as a rumor. Even the reporters closest to the story now distance themselves from it.

What seems clearer is that Sony saw more risk than reward, while Xbox struck a cheaper deal with wider rights. Ultimately, PHYSINT’s success will depend on execution, not on a number nobody will confirm.

The budget figures in this article are based entirely on unconfirmed reports. Neither Xbox, Sony, nor Kojima Productions has confirmed PHYSINT’s budget. MegaGames will update this article as new information becomes available.