Sony just made a decision that seems straight out of How to Lose Fans. In a statement published on X, PlayStation Studios confirmed that it was dropping Hideo Kojima’s PHYSINT after what it called three decades of “industry-leading and genre-defining” collaborations. Just minutes later, Xbox confirmed that it would publish the game instead, expanding on its existing partnership with Kojima Productions. Update from PlayStation Studios: After careful consideration, we have made the difficult decision to no longer collaborate with KOJIMA PRODUCTIONS on their PHYSINT project. We continue to admire Hideo Kojima’s vision for the game. Our relationship… — PlayStation (@PlayStation) September 10, 2026 What exactly happened between Sony and Kojima? Kojima himself clarified the schedule. He revealed that PlayStation Studios quietly canceled the PHYSINT project back in mid-June, catching his studio by surprise. His team then spent the next three months searching, negotiating and interviewing before finding a partner who shared their vision for the future. As previously confirmed through our official channels, in mid-June of this year we unexpectedly received notification from PlayStation Studios that they were canceling the PHYSINT project. PHYSINT is an important project both for me personally and for KOJIMA PRODUCTIONS. Deciding to save… pic.twitter.com/rQqhxAnb7N – HIDEO_KOJIMA (@HIDEO_KOJIMA_EN) September 10, 2026 This partner turned out to be Xbox. Xbox CEO Asha Sharma called himself honored that Kojima had “chosen Xbox,” and Kojima confirmed that the collaboration now extends beyond games into film and television and spans both OD and PHYSINT, an ambitious spy game that he called genre-defining. Sony, for its part, insists that its connection with Kojima “remains strong” even as the company drops his new project. Is this part of a larger Sony project? This isn’t the first time Sony has chosen the wrong hill to defend. The company has spent years pushing players toward an all-digital PS5, phasing out disc drives and betting that convenience will outweigh ownership. The company finally announced that it would no longer sell physical game discs starting in January 2028, and it was rightly criticized for this. Fans have been debating this trade-off ever since, wondering what would happen to the digital library if the servers ever went down. It’s funny that Kojima predicted exactly this future back in 2021, tweeting that physical media would eventually disappear. 1/2One day there will be no more CDs and BDs. This day will definitely come. As a Showa era person, I want to physically own the things I like. This is probably because I grew up in a time when there were no such products and information as there are now. Streams are more convenient. — HIDEO_KOJIMA (@HIDEO_KOJIMA_EN) July 24, 2021 Whether Sony’s decision has anything to do with this old tweet is anyone’s guess. But losing one of the most respected and creative minds in the gaming industry so soon after the backlash over killing off physical media isn’t quite the redemption PlayStation needed. Post navigation Trezor warns users about email provider hacks and phishing attacks First look at the 2028 Volvo XC40: hello new technology, goodbye electric car