Kojima Productions posted a statement on X on September 21, 2026 addressing reports about why Sony dropped PHYSINT. The studio called the PHYSINT rumors unverified and asked fans to approach them with skepticism. Bloomberg had published a report claiming budget concerns, exclusivity disputes, and missed deadlines were behind the cancellation — Kojima Productions said none of that came from an official or on-the-record source.
What Kojima Productions Said About the PHYSINT Rumors
The studio’s statement addressed the Bloomberg report directly. Kojima Productions said it would not normally respond to unsubstantiated speculation but felt the claims were defaming enough to require a response. The key line: “none of the claims written came from any official or on-the-record source.”
The statement also pushed back on any suggestion that the studio is struggling. Kojima Productions confirmed it is “in a healthy, profitable state” and that PHYSINT development with Xbox “continues to move forward.” The relationship with PlayStation also remains intact according to the studio.
Source: Kojima Productions
Bloomberg’s report came out days after Kojima publicly announced Sony had tried to cancel PHYSINT and that Xbox stepped in to save it. The Bloomberg piece said Sony walked away over ballooning costs, exclusivity disagreements, and missed deadlines. Neither Sony nor Kojima addressed the reason for the split at the time of the initial announcement.
That silence created the vacuum Bloomberg’s report filled. Kojima Productions stayed quiet until September 21 — the same day Hideo Kojima was at the Xbox Tokyo Games Show 2026 revealing Bill Skarsgård as PHYSINT’s lead actor.
Why Kojima Productions Broke Its Silence on PHYSINT Rumors
The studio said it does not typically respond to internet speculation. The decision to respond this time came down to the severity of the claims — Kojima Productions used the word “defaming” in the statement, which signals the Bloomberg report crossed a line the studio felt it could not ignore.
The timing also mattered. With Bill Skarsgård announced as the lead at Xbox TGS and production visibly moving forward, letting the Bloomberg narrative sit unanswered would have contradicted everything the studio was showing publicly.
Source: Xbox
PHYSINT Development Is Moving Forward With Xbox
Kojima Productions confirmed PHYSINT development is ongoing and on track under the Xbox publishing deal. The statement said development “continues to move forward with XBOX” — no qualifier, no caveats. The switch from Sony to Xbox as publisher did not slow production down in any way the studio acknowledged publicly.
OD — Kojima’s other project in development with Xbox — also got an update recently. Kojima shared behind-the-scenes footage confirming OD production resumed in 2026 and is on schedule. Both projects running simultaneously under the Xbox partnership is the current state.
Kojima Productions was specific about one thing — the relationship with PlayStation remains strong. That line matters because the narrative around the PHYSINT switch has been framed as a Sony-Kojima falling out. The studio is pushing back on that framing directly.
Whether PlayStation and Kojima Productions work together again on a future project is unknown. What the statement establishes is that the cancellation of PHYSINT did not end the professional relationship. Sony and Kojima Productions are still on good terms according to the studio’s own account.
Final Thoughts
Kojima Productions addressed the PHYSINT rumors on September 21. Bloomberg’s claims had no official source. The studio is profitable. PHYSINT continues with Xbox. PlayStation relationship intact. Bill Skarsgård announced it at Xbox TGS. OD also on schedule. Both projects moved forward — Kojima Productions pushed back, confirmed its position, and moved on.
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