Kojima Productions disputes reports the studio is in trouble
It released a statement saying ‘the studio is in a healthy, profitable state.’
It released a statement saying ‘the studio is in a healthy, profitable state.’
by
Terrence O'Brien
Sep 20, 2026, 6:15 PM UTC
Photo by Frederic J. Brown / AFP via Getty Images
Terrence O'Brien
is the Verge’s weekend editor. He’s covered the tech industry for over 18 years and knows a thing or two about synths.
After it was announced that Sony was dropping Hideo Kojima’sPhysint, and that instead theMetal Gear Solidcreator’s latest title would be coming to Xbox, there were a flurry of rumors about the falling out.Bloombergreported that the decision was driven by a number of factors, including missed deadlines, budget and profitability concerns, and its timed exclusivity.
In an interview withIGN, Kojima said that, considering the broader state of the industry, which has seen a number of studios close, he was worried about the future of Kojima Productions:
I know there’s a lot of news in the game industry that many studios are closing down, many titles are canceled, and I understand the situation in the industry as a whole. But I thoughtPhysintwas okay. ThatPhysintwas safe. So I was surprised … If we lose one contract, I thought I might have to cut all the people working onPhysint, right? Or our studio could end up collapsing because we’ll run out of cashflow.
The company has now taken to social media to state that, despite reports about disappointing sales ofDeath Strandingand its sequel, and the loss of funding from Sony, it is “in a healthy, profitable state.” And that, moreover, its “relationship with PlayStation remains strong.”
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