Physint Xbox Deal Reportedly Costs Far Less Than US$400 Million

The sudden move of Kojima Productions’ Physint from PlayStation to Xbox already ranks among 2026’s more unexpected industry developments, but attention has now shifted towards another question: exactly how much is Microsoft spending on Hideo Kojima’s next action-espionage game?

The answer apparently is not US$400 million.That figure emerged after reports that Xbox’s budget for Physint was around US$400 million, raising eyebrows given Microsoft’s ongoing restructuring and cost-cutting efforts across Xbox.

However, that number has since been challenged, with multiple sources suggesting Xbox’s actual commitment is considerably smaller. We already know the project changed hands after PlayStation walked away from Physint and Xbox stepped in as its new publishing partner. Subsequent reporting also shed more light on why PlayStation reportedly decided against continuing with the project.

The US$400 Million Figure Has Been Challenged

Bloomberg pushed back on the reported figure, reporting that the Xbox’s deal was significantly below US$400 million, although the outlet was reluctant to provide a specific number without definitive documentation. Jez Corden subsequently went further in a Windows Central report challenging the US$400 million claim, citing sources familiar with the contracts.

According to Corden, Xbox is committing only a fraction of the previously reported amount to Physint. He also heard that the US$400 million figure may instead have reflected what Sony and PlayStation could eventually have spent under their original arrangement before abandoning the project. The Game Business later walked back its original figure following the conflicting reports.

Physint

Xbox’s Deal May Go Beyond Physint

There may also be more to Microsoft’s agreement than simply publishing one game. Corden reports that Xbox negotiated film and television licensing rights connected to Physint, while the new arrangement may also include improved terms surrounding OD, Kojima Productions’ separate horror project already being developed with Microsoft.

That would fit with the broader partnership between Xbox and Kojima Productions, which has expanded beyond simply bringing Physint under Microsoft’s publishing umbrella.

Importantly, however, that does not mean a relevant movie or television adaptation has actually been announced. While the project has long carried ambitions beyond games, any specific screen production remains unconfirmed.

The game already carries plenty of Hollywood presence, with Bill Skarsgård confirmed as the lead actor alongside Charlee Fraser, Don Lee and Minami Hamabe.

Plenty Remains Undecided

Even with its new publisher in place, the game remains years away and several fundamental decisions are still being made. Kojima recently confirmed that the team has yet to settle on the engine that will power Physint, although Xbox technology is now among the options being explored.

For now, the most important takeaway is that the US$400 million figure should no longer be treated as Xbox’s confirmed investment.

Microsoft and Kojima Productions have not publicly disclosed the value of their agreement, meaning the exact amount remains unknown even as reporting increasingly suggests the real number is substantially lower.

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