The $400M budget rumor was fake news—Xbox got Kojima's Physint for a discount.
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Budget Rumors Debunked: Xbox CEO Asha Sharma confirmed to The New York Times that Xbox is spending "substantially below" what it typically costs to make a AAA game. This debunks the viral rumors of a $400 million price tag and corroborates reports from Jason Schreier and Jez Corden that Xbox paid a small fraction of that.
TV & Film Rights Included: The Xbox deal officially gives Microsoft adaptation rights for potential Physint movies and shows.
Why Sony Dropped It: Sony backed out after months of budget disputes, missed development milestones, and low commercial expectations (given Death Stranding's performance).
Current Status: Kojima claims it’s his highest-selling potential concept yet. Development continues with direct Xbox tech support, though a PS5 release remains unconfirmed and a game engine switch from Decima is possible.