Xbox is in the middle of gutting its game portfolio, and fans of a certain horror auteur have been holding their breath. Turns out they can exhale.
Microsoft’s Xbox division has spent the last year quietly walking away from partnerships it once championed. A publishing deal with Brenda and John Romero got scrapped last June. Patrice Désilets’ 1666: Amsterdam lost its Xbox backing before it ever got off the ground. And just this week, Microsoft confirmed it’s pulling out of IO Interactive’s Project Fantasy entirely, forcing the Hitman studio to find funding elsewhere. Five more studios, including Arkane and Double Fine, are reportedly at risk of closure as part of what Xbox is internally calling its “reset.”
Against that backdrop, it made sense for fans to worry about OD, Hideo Kojima’s mysterious horror collaboration with Jordan Peele. The game has been part of Xbox’s slate since a Game Awards reveal back in 2023, and details have stayed scarce ever since.
Hideo Kojima’s OD Survives Microsoft’s Xbox Reset
According to IGN, a source familiar with Microsoft’s plans confirmed OD remains in active development at Kojima Productions and will still be published by Xbox. Unlike the projects Microsoft has cut loose, Kojima’s game isn’t on the chopping block, even as the company reassesses where its investment dollars go.
Xbox CEO Asha Sharma has publicly backed the project, calling it a “deeply moving game” in a recent Entertainment Weekly feature. Kojima himself used that same interview to reflect on how hard it was to get OD made in the first place, recalling that multiple publishers told him he was “crazy” before Xbox stepped in. He specifically credited former Xbox chief Phil Spencer with being the one person who “understood the concept” and greenlit it.
OD stars Sophia Lillis, Hunter Schafer, and the late Udo Kier, and has drawn comparisons to Kojima’s cult horror teaser P.T. since its first trailer. Microsoft has told Bloomberg it isn’t reducing its overall content investment, just redirecting it toward “highest priorities,” with reports suggesting franchises like Halo and Fallout are getting the biggest boost.
Xbox’s cuts are expected to continue rolling out starting July 6, with more studio and project casualties likely on the way. For now, at least, Kojima’s next nightmare is safe.
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