Report: Kojima asked Sony $400 million for Physint, but Xbox is only paying a "fraction" of that amount

Where the $400 Million Number Came From

The figure that dominated conversation over the weekend originated with Christopher Dring of The Game Business. Speaking on his podcast on Friday, Dring said Xbox was "signifying Kojima for a project often referred to as Physint with a budget around $400 million." He added at the time that he had heard "everything from $300 million to $600 million, although it's $400 million that is the figure that is bandied around."

A Monday-Sized Walk-Back

By the weekend, the claim began to unravel — starting with Dring himself. On X/Twitter, he clarified that Xbox is likely paying "quite a bit less" than the number Kojima had originally quoted Sony.

Others quickly piled on with similar pushback:

• Bloomberg's Jason Schreier said his own sources described Microsoft's negotiated figure as "significantly less than this."
• Windows Central's Jez Corden went further, claiming Xbox is paying only a "fraction" of it.

Notably, none of these sources provided an actual figure, so the real cost of the deal remains unknown.

How Physint Ended Up at Xbox in the First Place

The reported budget dispute is only the latest twist in Physint's rocky journey. Physint, Kojima Productions' action-espionage title and spiritual successor to Metal Gear Solid, was originally announced as a PlayStation project. According to reports, Sony spent months negotiating with the studio before pulling its funding after the project exceeded budget and missed deadlines. Sony's decision to walk away came in June.

Kojima, the creator of Metal Gear and Death Stranding, has since spoken about Sony's sudden decision — and it didn't take long for him to find a new home for the project. Xbox stepped in to continue funding and publishing it.

The deal reportedly includes more than just the game itself: movie and TV licensing rights for Physint are part of the arrangement, along with improved terms for Kojima's other in-development project, the horror game OD.

Will Physint Stay Xbox-Exclusive?

That remains the open question. Xbox is currently re-emphasizing exclusives, recently confirming that Gears of War: E-Day and Clockwork Revolution won't be released on PlayStation. However, other titles — including Forza Horizon 6 and Fable — are still in the works for PS5, which leaves some hope that Physint could follow a multiplatform path.

Kojima himself declined to settle the matter when asked recently: "I think all of that will be announced at a later time. I'm not sure yet, and I can't really say."

The Broader Backdrop at Microsoft

The funding news lands during a turbulent stretch for Xbox. Microsoft CEO Satya Nadella recently praised Xbox's ongoing "streamlining" under Xbox CEO Asha Sharma — comments that came just days after another 268 layoffs were announced. The restructuring appears to include the impending closure of British studio Ninja Theory, plus a wave of organisational changes: Obsidian moving under Bethesda's control, Playground and Turn 10 merging, Undead Labs going independent, and Rare, World's Edge, and Halo moving under Activision's control.

Where Things Stand Now

The only concrete takeaway: the $400 million figure is no longer considered credible, and no verified number has replaced it. Physint is an Xbox-funded and published project with bundled screen-adaptation rights, its platform strategy is unannounced, and development continues amid significant upheaval across Xbox's studios.