Kojima Productions issued a statement on Sunday confirming that the studio remains financially stable and operationally healthy, directly countering recent speculation about its condition.

The clarification follows heightened discussion after Sony announced it would not publish Hideo Kojima’s upcoming title Physint, opting instead to release the game through Xbox Game Studios. Initial reports from Bloomberg indicated that the shift stemmed from a combination of missed development milestones, budgetary pressures and concerns over profitability, with the game’s timed exclusivity arrangement cited as a contributing factor.

In a separate interview with IGN, Kojima expressed awareness of broader industry trends, including the recent closures of several development studios and the cancellation of numerous projects. He noted that while he anticipated challenges, he did not expect the situation to jeopardize Physint’s development or the studio’s overall viability. “I thought Physint was okay. That Physint was safe,” he said. “So I was surprised … If we lose one contract, I thought I might have to cut all the people working on Physint, right? Or our studio could end up collapsing because we’ll run out of cashflow.”

Kojima Productions has since used social media to emphasize that, despite public concerns about the commercial performance of Death Stranding and its upcoming sequel, the studio continues to operate profitably. The company also affirmed that its partnership with PlayStation remains intact.

Terrence O'Brien, a long‑time technology journalist with over 18 years of industry coverage, reported on these developments for The Verge.

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