Xbox’s funding for Hideo Kojima’s upcoming horror game OD is reportedly safe as the console gaming giant prepares for mass layoffs and cancellations for a second year in a row.
Following last year’s devastating layoffs, which saw the cancellation of Project Blackbird, Perfect Dark, Everwild, and more, Xbox is reportedly scrapping even more projects. At the time of writing, reports claim that State of Decay, Marvel’s Blade, Senua, and other titles are facing the execution’s axe.
According to sources close to the project, Hideo Kojima’s upcoming horror game, OD, is safe from cuts. Reported by IGN, as Microsoft “reassesses” its video game investments, Kojima’s game will continue to be funded.
OD has been in some form of development since 2022 and is described as a “very unique, immersive, and totally new style of game—or rather, a new form of media”. The game is reportedly tied extensively to Xbox’s cloud gaming technology, and is written by both Hideo Kojima and horror icon Jordan Peele.
The upcoming game was recently pushed in Entertainment Weekly’s large-scale coverage of Xbox’s ongoing content plans. “I pitched to many people, to the big companies, and also to the up-and-coming companies. All of them said the same thing,” Kojima told the outlet. “They said that I’m crazy, and that they really don’t understand the concept — that they will not be able to do it.”
While OD is reportedly safe from the blade, other titles are seemingly not. At the time of writing, the upcoming horror game has no proposed release date. However, both State of Decade and Marvel’s Blade—two other titles on the chopping block—are reportedly aiming for 2027 launches with the former weighing up an early access launch.
Speaking to Bloomberg, Xbox is not planning to spend less on gaming overall. “We’re not reducing our overall investment in games,” the company told the outlet. “We expect to invest about the same in content as we did last year. What’s changing is where we’re investing and the kinds of projects we’re backing.”
Furthermore, Xbox is reportedly focused on speeding up development of its flagship IPs. This includes The Elder Scrolls, Fallout, Halo, and others. This could result in more spin-off titles developed by partners while also turning away from new, riskier IPs. However, as fans will know, original IPs—such as Sea of Thieves and Grounded—have been the biggest wins for Xbox this generation.
In an interview with us at FRVR, Skyrim and Fallout designer Bruce Nesmith explained that speeding up development of these titles risks disappointing fans. “In my opinion, the biggest risks of shortened schedules is quality, reduced features, polish, or bugs,” Nesmith said. “The things that are done last end up getting set aside to complete the game on time. And of course faster dev times would result in faster sequels. But that’s the wrong question. Those sequels risk disappointing fans.”
