Kojima Productions has addressed speculation surrounding Sony’s decision to end its involvement with PHYSINT, saying its relationship with PlayStation “remains strong” as development continues with Xbox.

Sony announced on September 10 that it was stepping away from the action-espionage game, first announced alongside Kojima Productions in 2024.

Hideo Kojima later revealed that PlayStation Studios had informed the developer in mid-June that it planned to cancel the project.

Kojima Productions spent around three months looking for another publishing partner before reaching an agreement with Xbox.

Reports following the announcement claimed Sony had concerns about PHYSINT’s budget, missed deadlines, potential profitability and its lack of permanent PlayStation exclusivity. Reports also cited the commercial performance of Death Stranding and Death Stranding 2 as a factor in Sony’s decision.

Kojima Productions said those claims did not come from official or on-the-record sources.

“Normally, we would not comment on unsubstantiated speculation on the internet, but these aspersions around our relationship with PlayStation, the commercial performance of the DEATH STRANDING franchise, and the broader production planning and investment for PHYSINT, have reached beyond the studio and have touched our fans, our creative partners, and colleagues we have worked alongside with for three decades,” the studio said.

It added: “None of the claims written came from any official or on-the-record source, and as such we encourage you to take them with a dose of scepticism.”

The developer acknowledged that losing PlayStation as PHYSINT’s publisher was a “serious situation” but said it remains profitable.

“The studio is in a healthy, profitable state, development for PHYSINT continues to move forward with XBOX, and our relationship with PlayStation remains strong.”

Kojima also said he was “shocked and surprised” by Sony’s decision but confirmed there was no ongoing dispute: “We’re not in dispute. We’re not fighting with them.”