Xbox deal with Kojima ‘unaffected’ by upcoming cost cuts

Xbox’s ongoing internal reset has raised concerns about the future of several first‑party projects, but one high‑profile game appears to be unaffected. According to a new report, Hideo Kojima’s Xbox exclusive, OD, will continue development as planned despite wider cuts and cancellations across the organisation.

IGN reports that Microsoft’s restructuring does not include any changes to Kojima Productions’ deal with Xbox. OD, described as an experimental cloud‑powered horror title, remains in active development and is still part of Xbox’s future slate.

This update arrives amid growing uncertainty surrounding the platform. Over the past month, reports have indicated that several Xbox studios are facing potential closure and that multiple unannounced projects have already been cancelled. While not confirmed to be a result of Xbox cuts, IO Interactive just announced that it lost its publishing partner for Project Fantasy, a new Action RPG that had been linked to Xbox in the past.

Kojima and Xbox announced their partnership a few years ago, in 2022. At the time, Kojima was still heavily focused on Death Stranding 2, but that game has been out for around a year now, freeing him up to get OD over the finish line.

KitGuru Says: Xbox has not had much success tapping into the Japanese game development market. The company ended its partnership with PlatinumGames during the Xbox One era and abruptly sold off Tango Gameworks just weeks after shipping a surprisingly popular game. Cancelling Kojima's game after all of that would hurt Xbox's reputation even further. 

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