Microsoft is currently trimming its project list, but Hideo Kojima’s mysterious horror title OD has survived the latest wave of cuts. As the company navigates a broader strategy reset, the Kojima Productions project remains a priority for the publisher, according to reports.
First teased three years ago and officially announced at the 2023 Game Awards, OD was greenlit by Phil Spencer as part of a push for ambitious, creative-led third-party titles. While that original slate has seen significant attrition, OD is officially safe from the chopping block. The project, which Kojima has described as a single-player horror game designed to push the limits of "scariness," is being developed in Unreal Engine.
Kojima recently told Entertainment Weekly that he has been working on a system to help players continue even if the game becomes too intense, though he noted he couldn't share details without spoiling the mechanic. The game features a high-profile cast, including Sophia Lillis, Hunter Schafer, and the late Udo Kier, with creative involvement from director Jordan Peele.
A Changing Strategy at Xbox
The commitment to OD comes during a period of significant contraction for Xbox. Following the 2023 Activision Blizzard acquisition and subsequent layoffs, the company has canceled several high-profile collaborations. Recent casualties include:
- A publishing deal with Brenda and John Romero, cancelled last June.
- Patrice Désilets’ action game 1666: Amsterdam, which is no longer moving forward with Xbox.
- IO Interactive’s Project Fantasy, which Microsoft confirmed it will no longer publish following a scaling-back period in 2025.
Xbox CEO Asha Sharma addressed the shift in a recent memo, stating that while the company is not reducing its overall financial investment in games, it is changing where that money is directed. "We need to reassess the balance between these and our investment priorities for the next 5 years," she wrote. Reports suggest this shift involves prioritizing blockbuster franchises like Halo and Fallout, leaving many other projects in limbo.
As of mid-2026, Microsoft is facing further pressure, with reports indicating that over 1,000 employees and several studios, including the developer of Dishonored and Blade, may be impacted by the ongoing reorganization. For now, however, the partnership between Microsoft and Kojima Productions continues to hold firm.