Kojima Productions has issued a public statement disputing multiple reports suggesting the studio is facing financial difficulty and operational instability — declaring it is 'in a healthy, profitable state' and that its 'relationship with PlayStation remains strong.'

The statement follows a turbulent week for the studio. Bloomberg reported that Sony had decided to drop Hideo Kojima's upcoming title Physint from its platform, citing missed deadlines, budget overruns, and profitability concerns around the timed exclusivity model. The game is now expected to launch on Xbox instead.

In an interview with IGN, Kojima himself expressed anxiety about the studio's future in the context of widespread industry closures: '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 studio also faced questions about the commercial performance of Death Stranding and its sequel.

Despite these concerns, the company's official statement pushes back firmly, asserting both financial health and continued PlayStation partnership. The studio is currently developing Physint for Xbox and has other unannounced projects in the pipeline.

The episode highlights the precariousness even high-profile studios face in an industry undergoing consolidation, with multiple AAA developers closing or downsizing throughout 2026.