Shreyer found out why Sony broke up with Metal Gear Solid creator Hideo Kojima.
Sony's decision to terminate PHYSINT funding for Hideo Kojima was made for a combination of financial and manufacturing reasons, Bloomberg journalist Jason Shreyer said, citing his sources.
One of the main factors was the commercial success of Death Stranding and Death Stranding 2: On the Beach, both of which failed to bring PlayStation the revenue the company had hoped for.
In addition to this, Sony was not entirely satisfied with the development of PHYSINT. The project had already missed several internal deadlines and was moving towards significantly exceeding the approved budget, although there were several years left before it was released.
The risks reinforced the partnership structure with Kojima Productions. Kojima's studio retained the rights to PHYSINT, but the finished game was not to remain exclusive to the PlayStation.
Earlier this year, Sony decided to abandon the release of PlayStation Studios' new single-player games on PC, so the existence of a PC version of PHYSINT would go against those plans.
Shreyer added that Sony and Kojima Productions' sharp split came amid the tightening of internal controls on PlayStation. After the failure of the service initiative, the closure of Concord, and the cancellation of several other expensive projects, the company began to evaluate the financed games based on the results of the production stages, analyzing development status, compliance, budget, and commercial prospects.
At the same time, personal ties between Kojima and the PlayStation management have weakened. Shrier noted that in recent years, many executives have left the company who maintained close relationships with the game designer. Their collaboration has continued for about three decades since the release of the first Metal Gear Solid on PlayStation.
Despite the combination of these circumstances, Sony did not publicly accuse Kojima of any wrongdoing, limiting itself to a statement about the "impossible decision" to stop participating in the development of PHYSINT, and praised the Japanese game designer's creative vision.
Kojima himself has previously admitted that the announcement he received in the summer from Sony that he was no longer funded was a complete surprise to his studio.
Kojima Productions spent three months searching for a new partner and eventually made a deal with Microsoft. The PlayStation's worrying multiplatform aspect fits well with the Xbox strategy. Microsoft releases its games simultaneously on Xbox and PC consoles, so it can earn money on both versions of PHYSINT.
The agreement also extends to the creation of PHYSINT films and series and the experimental horror OD: Knock.
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