Kojima Productions says it remains profitable amid Physint funding dispute
Kojima Productions has rejected reports that the studio is in financial difficulty after Sony reportedly dropped funding for Physint, prompting speculation about tensions between the companies. The dispute matters because the decision was reportedly linked to missed deadlines, budget and profitability concerns, and the game’s timed exclusivity, while Hideo Kojima had expressed concern that losing the contract could threaten the studio’s survival.
Kojima said he had believed Physint was secure and feared that losing it could force widespread redundancies or leave the company without enough cashflow. Kojima Productions has since stated that it remains healthy and profitable, despite claims of disappointing sales for Death Stranding and its sequel, and insisted that its relationship with PlayStation remains strong.
- Kojima Productions denies reports it is in financial trouble.
- Sony reportedly withdrew funding for Physint.
- The studio says its PlayStation relationship remains strong.
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Kojima Productions is a video game studio founded by Hideo Kojima, known for creating the Death Stranding series. The studio had been developing a game called Physint with financial support from Sony, which operates the PlayStation platform.
Reports emerged that Sony had withdrawn funding for Physint, with the decision reportedly linked to missed deadlines and budget overruns. The withdrawal raised questions about the relationship between the studio and its major financial backer.
This matters because Kojima Productions is a relatively small, independent studio with limited alternative revenue sources. When a major-funded project loses its backing, it threatens a studio's ability to pay staff and continue operations, which explains why this development prompted concern about the studio's financial stability.
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Originally published by The Verge as “Kojima Productions disputes reports the studio is in trouble”.