- Xbox CEO Asha Sharma confirms Hideo Kojima's PHYSINT deal costs less than what the company spends on AAA games.
- Their deal with Kojima includes both film and TV rights, further disputing the $400 million budget claims.
- Sharma also clarified that Sony and Kojima would continue to work together, saying "competition and collaboration can coexist".
Last week, multiple reports went back and forth over Hideo Kojima’s PHYSINT budget, with some claiming it exceeded $400 million while others disputed the figure. Xbox CEO Asha Sharma has now addressed the reports, saying the deal cost far less than what Xbox typically spends on a AAA game.
Speaking to The New York Times, Asha Sharma confirmed that “The agreement was substantially below what Xbox would typically spend to develop a premium game.” According to the excerpt, Xbox’s deal with Kojima includes both film and TV rights, making the reports claiming PHYSINT cost more than $400 million inaccurate.
NYT wrote that “Sharma had a rare moment of speechlessness when discussing the deal for Kojima’s upcoming stealth game Physint. She laughed at the idea of apologizing to Sony before shrugging and saying she was happy Kojima chose to work with Xbox.”
However, despite the shade at Sony, Asha Sharma clarified that Kojima’s work with the company would continue after Xbox saved PHYSINT, saying, “Competition and collaboration can coexist.” So, maybe a Death Stranding 3 isn’t off the table just yet.
On the budget discussion, Bloomberg’s Jason Schrier, who previously reported that Sony ditched Kojima’s PHYSINT over budget concerns, stated that the budget was significantly less than $400 million, and this update confirms it.
Speaking of Kojima’s upcoming action-espionage game, given that PHYSINT’s stacked cast, with Bill Skarsgard leading the lineup, a $400 million budget seemed plausible.
However, Asha Sharma’s comments suggest Xbox isn’t spending more than it typically would on a game of this scale, meaning hiring Hideo Kojima wasn’t the bank-breaking deal many assumed it was, at least not for Microsoft.
This also significantly increases the chance of PHYSINT being Kojima’s biggest-selling game ever. Last week, at the Tokyo Games Show 2026, the 60-year-old Japanese developer confirmed that Kojima Productions is profitable after skepticism over PHYSINT’s alleged budget.
That said, what do you think the actual budget for Hideo Kojima’s PHYSINT is? Tell us in the comments section below.
