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PlayStation stepped away. Kojima says it was cancelled in June.
PlayStation announced it is leaving Hideo Kojima's PHYSINT and Xbox took over publishing within the hour. The two statements describe the same split very differently.
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What PlayStation said
It stepped away "after careful consideration", praised Kojima's vision and said the relationship remains strong. No reason was given.
What Kojima said
Notice that PlayStation would cancel PHYSINT arrived in mid-June. The studio spent three months looking for a new partner before agreeing terms with Xbox.
What Xbox takes on
Publishing for PHYSINT alongside OD, plus a film and television collaboration. No platforms, release window or exclusivity terms were announced, and neither company has said why Sony walked.