Kojima Productions disputes reports the studio is in trouble | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyNotificationsNotificationsHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.NotificationsNotificationsHamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchLightSystemDarkTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Kojima Productions disputes reports the studio is in troubleNotificationsNotificationsComments DrawerNotificationsCommentsLoading commentsGetting the conversation ready...GamingCloseGamingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GamingNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechKojima Productions disputes reports the studio is in troubleIt 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'BrienCloseTerrence O'BrienWeekend EditorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Terrence O'BrienSep 20, 2026, 6:15 PM UTCLinkShareGiftPhoto by Frederic J. Brown / AFP via Getty ImagesTerrence O'BrienCloseTerrence O'BrienPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by 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’s Physint, and that instead the Metal Gear Solid creator’s latest title would be coming to Xbox, there were a flurry of rumors about the falling out. Bloomberg reported that the decision was driven by a number of factors, including missed deadlines, budget and profitability concerns, and its timed exclusivity.In an interview with IGN, 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 thought Physint was okay. That Physint was safe. 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.The company has now taken to social media to state that, despite reports about disappointing sales of Death Stranding and 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.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Terrence O'BrienCloseTerrence O'BrienWeekend EditorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Terrence O'BrienGamingCloseGamingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GamingNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPlayStationClosePlayStationPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PlayStationSonyCloseSonyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All SonyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularIt’s not just LG. 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Kojima Productions has publicly disputed reports suggesting that the studio is experiencing financial difficulties, asserting that the studio remains in a healthy and profitable state. This statement is made in the context of broader industry speculation surrounding the studio's trajectory. Prior reports suggested that the decision by Sony to shift the development of Hideo Kojima’s latest title to Xbox, instead of remaining on PlayStation, was influenced by concerns regarding missed deadlines, budget constraints, overall profitability, and the timing of exclusivity agreements.

When questioned about the wider state of the game industry, Kojima expressed anxiety concerning the viability of Kojima Productions, noting that many studios are closing down and titles are being canceled. He elaborated that although he believed the specific project, Physint, was safe, he was surprised by the implication that losing a single contract might necessitate the dissolution of the entire studio or lead to a cashflow crisis.

Despite these external rumors regarding disappointing sales of titles like Death Stranding and its sequel, and the loss of funding from Sony, Kojima Productions maintained a positive stance. The studio affirmed that its relationship with PlayStation remains strong, supporting its claim that the company is currently in a healthy and profitable condition.