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A reported $400 million budget for Hideo Kojima’s PHYSINT appears to be substantially overstated, according to Windows Central. The publication says Xbox and Kojima Productions are developing the upcoming action-espionage game for a fraction of that figure, while Chris Dring has since walked back the claim.
How the figure changed
Chris Dring of The Game Business initially reported that Xbox’s budget for PHYSINT was $400 million. Bloomberg’s Jason Schreier subsequently challenged the figure, and Windows Central says sources with direct knowledge of the contracts also described the project’s actual budget as far lower. The precise amount has not been disclosed.
A broader deal
Windows Central reports that Xbox’s agreement with Kojima Productions includes movie and television licensing rights for PHYSINT. The deal also reportedly provides enhanced terms for OD, Kojima’s atmospheric horror project being developed for Xbox. The report does not establish that either game has a confirmed release date or publicly stated budget.
Not a funding explanation for layoffs
The budget rumor circulated alongside discussion of Xbox’s restructuring, layoffs and studio changes, prompting speculation that cuts were connected to PHYSINT. Windows Central rejects that interpretation, describing the project’s reported spending as a fraction of the rumored total rather than evidence that hundreds of millions were redirected to it.
Cost pressure in AAA development
The report places the dispute within a wider effort to control the cost of large games. It says salary competition with AI-adjacent software engineering and expensive development hubs are increasing pressure on US studios, while Microsoft has explored outsourcing work to regions including Eastern Europe and the United Kingdom. Windows Central also describes film and television rights as a possible way to support game budgets and marketing.
Source: No, Xbox didn't pay $400 million for Hideo Kojima's 'PHYSINT'
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