Sony Group Corp.'s PlayStation pulled out of an upcoming game by the well-known designer Hideo Kojima because of concerns over budget, potential profitability and exclusivity, according to people familiar with the project.
One major factor behind the decision was the commercial performance of Kojima's previous two games, Death Stranding and its sequel, which didn't meet PlayStation's revenue expectations, said the people, who asked not to be identified discussing information that's not public.
But the new project has also missed deadlines and was on track to be well over budget despite being years away from release, the people said. In addition, PlayStation was reluctant to invest hundreds of millions of dollars in another game that wouldn't remain permanently exclusive to the company's own hardware. Both Death Stranding games were "timed" PlayStation exclusives that were later released on other platforms. Kojima's closely held studio, Kojima Productions, retained ownership of the franchises.