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October 25, 2026

Xbox reportedly pays less than Sony for Kojima’s work

Speculation surrounding the budget for Hideo Kojima’s latest game, Physint, has been substantially revised after initial reports exaggerated its financial backing. While earlier claims suggested Xbox might be investing $400 million, this figure has now been challenged, with industry specialists indicating a significantly lower commitment.

Budget Claims and Revisions

The initial $400 million figure for Physint’s development budget originated from Christopher Dring of The Game Business, broadcasted during his podcast. However, Dring later amended this speculation via X/Twitter, revealing that Xbox is likely contributing “quite a bit less” than Kojima’s initial proposal to Sony. Dring had previously cited hearing a range between $300 million to $600 million as potential figures, but noted that $400 million was the number most frequently cited.

Further backing this revised stance is Bloomberg’s Jason Schreier, who, drawing on insider sources, confirmed that Microsoft’s commitment is “significantly less” than the originally touted figure. Meanwhile, Windows Central’s Jez Corden suggested Xbox’s investment is merely a “fraction” of the initial claim, though neither source provided an exact number.

Transition from Sony to Xbox

Physint, an action-espionage game by Kojima Productions and seen as a spiritual successor to Metal Gear Solid, began as a PlayStation project. However, Sony reportedly withdrew after substantial budget overruns and missed timelines, a decision made in June according to Kojima. Successfully transitioning to Xbox, Kojima secured support to continue funding and publishing.

Additional Rights and Projects

The Xbox deal also includes media rights for Physint, spanning potential adaptations for film and television. Furthermore, it encompasses improved terms for another of Kojima’s undertakings, the horror game OD. This development coincides with Xbox’s renewed focus on exclusive titles, which was recently underscored when it disclosed that Gears of War: E-Day and Clockwork Revolution would remain exclusive to Xbox, with no plans for PlayStation releases. Despite this, projects like Forza Horizon 6 and Fable are still on track for PS5, leaving room for speculation about future partnerships for Physint.

Kojima remained reticent when pushed for details on the exclusivity status of Physint, indicating forthcoming announcements. “I think all of that will be announced at a later time,” he stated. “I’m not sure yet, and I can’t really say.”

Xbox’s Organisational Changes

This news emerges against a backdrop of significant organisational adjustments within Xbox’s structure. Recently, Microsoft CEO Satya Nadella commended the continued “streamlining” led by Xbox CEO Asha Sharma. This follows the announcement of an additional 268 layoffs, the likely closure of British studio Ninja Theory, and organisational repositioning, including Obsidian moving under Bethesda’s purview, Playground and Turn 10’s merger, Undead Labs gaining independence, and the reorganisation of Rare, World’s Edge, and Halo under Activision’s oversight.

Reporting based on coverage first published by eurogamer.net.