Kojima’s OD Horror Still Moving Despite Microsoft Xbox Publishing Reset Plans

Hideo Kojima’s next horror project, OD, is expected to keep moving forward despite Microsoft’s ongoing reset of its Xbox publishing plans, sources say.

Release and platform status: where OD stands

One person familiar with Microsoft’s internal planning says OD remains in active development at Kojima Productions and continues to be pursued with Xbox publishing support, even as the company re-evaluates where it wants to put its money in the games business.

That reassessment is already hitting other studios. IO Interactive, the developer behind the 007 First Light project, announced layoffs after the publisher pulled the plug on its upcoming fantasy title. The game in question was reportedly receiving funding from Xbox.

Microsoft has framed the shift as a change in focus rather than a blanket retreat from games. In comments shared with Bloomberg, the company said it is “taking a fresh look at where we invest so we’re focusing on our highest priorities.”

Microsoft also emphasized it doesn’t plan to cut its overall game spending. The company said it expects to invest about the same amount in game content as last year, while clarifying that the real difference is where that investment goes and what kinds of projects it backs.

Separately, multiple reports suggest the “reset” could put several internal studios in danger of closure. Studios named as being potentially at risk include Arkane Lyon (developer of Marvels’ Blade), Double Fine (Psychonauts), Ninja Theory (Hellblade), Compulsion (South of Midnight), and Undead Labs (State of Decay 3). Studio leadership is reportedly working to secure their future, either by selling the studio or arranging a management buyout that would spin the subsidiary off as its own entity.

OD itself remains largely under wraps, but some details about its original direction have come into view. The plan, at least initially, was to center the game around three principal performers: Sophia Lillis, Hunter Schafer, and the late Udo Kier. Kier passed away in November at the age of 81. Kojima Productions had reportedly already finished a scan of the actor, but it didn’t complete a recording session in time.

OD’s concept, cast, and Xbox leadership support

What Kojima says about the idea behind OD

Kojima has described OD as an attempt to do something new and different. In a recent interview with Entertainment Weekly, he said he’s had the core OD concept since he was working on DS1 (Death Stranding), and that he developed it largely on his own. He added that he can’t share much yet, but characterized the project as a kind of game system no one has seen before.

He also explained that he pitched the concept to a range of teams, including major companies and newer publishers. In his telling, many of them reacted with skepticism, saying they didn’t understand the idea and doubting they could make it happen.

Phil Spencer’s role and Asha Sharma’s continuing interest

Despite that initial uncertainty, former Xbox gaming leader Phil Spencer reportedly understood the concept and signed off on the project. Spencer was later replaced at the head of Microsoft’s gaming division earlier this year by Asha Sharma, who said she remains just as interested in OD as her predecessor.

Sharma said she believes the team’s creative talent can identify and craft a strong game better than she could, and that her job is to give the project room to breathe. She also framed OD as representing another style of game for the platform.

In Sharma’s view, having a project like OD signals that Xbox hasn’t “reached the boundary of games.” She argued that the platform needs to stay open so more creators and developers can join and succeed, adding that the “next Kojima” is still unknown.

Photo by Rosdiana Ciaravolo/Getty Images.

Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].