Physint, Hideo Kojima's 'action espionage' project positioned as a spiritual successor to Metal Gear Solid, was unveiled as a PlayStation exclusive in January 2024 during a showcase where PlayStation Studios head Hermen Hulst appeared alongside Kojima. According to Kojima, PlayStation Studios notified Kojima Productions in mid-June that it intended to cancel the project. Kojima said this news prompted a three-month search for a new partner, which ended with Kojima Productions agreeing to work with Xbox.

The announcements arrived within minutes of each other on September 9-10. PlayStation's official account posted first, saying the company had made 'the difficult decision to step away from collaborating with Kojima Productions' on Physint, while adding that it retains 'great admiration' for Kojima's vision and that the two companies' relationship 'remains strong' after three decades of collaboration, with hopes for future work together. About a minute later, Xbox CEO Asha Sharma announced on social media and via an Xbox Wire post that Xbox would publish Physint, calling it 'a big moment for Xbox' and saying she was proud to build both Physint and Kojima's other in-development project, OD, with him. Kojima also posted his own account of events, confirming PlayStation's June cancellation notice and stating that development of Physint 'is ongoing and will continue moving forward' under the new partnership.

Sharda's statement noted the relationship with Kojima Productions will extend beyond games into film and television collaborations. This aligns with Kojima's past comments describing Physint as intended to be 'both a game and a movie at the same time.' The original PlayStation reveal had heavily featured Columbia Pictures, a Sony Pictures-affiliated studio, raising questions about whether that connection continues now that Xbox is involved, and whether the game will still use Sony-owned Decima Engine technology, though these details remain unconfirmed.

Physint does not have a release date. As of last year, Kojima said the game was still five to six years away, and he has previously stated that casting, scans, and performance-capture sessions were expected to begin in late 2026, with actors including Charlee Fraser, Don Lee, and Minami Hamabe reportedly attached. Kojima has also referred to Physint as 'just the start,' a comment some coverage suggested could point to franchise ambitions.

The switch comes amid broader turbulence at both companies. Xbox has been undergoing a 'reset' initiative involving cuts to numerous studios and games, though Kojima's other project, OD, reportedly survived those cuts. Sony, meanwhile, has been reassessing its investments as profit margins stagnate, and has faced other setbacks including the closure of Bluepoint Games and the cancellation of Destiny 3. Coverage of the reversal noted this context, with some outlets framing PlayStation's decision to cancel a high-profile Kojima project—only for Xbox to pick it up—as a public-relations misstep for Sony.

Public reaction to the announcements was largely one of surprise, with many online commenters characterizing the sequence of events as an unusual and dramatic turn given the three-decade history between Kojima and PlayStation. Some commentary questioned whether the move represented an opportunistic gain for Xbox or evidence of mismanagement at PlayStation, while acknowledging that further details about the reasons behind Sony's decision have not been made public.