Xbox Is Streamlining Its Offerings, But Hideo Kojima’s Upcoming Horror Game OD Remains Intact

Hideo Kojima’s upcoming horror title, OD, is generating strong P.T. vibes and was first hinted at three years ago as part of an ambitious lineup of third-party games for Xbox. While Microsoft has since pulled back on several collaborations, OD remains a priority. A source close to the situation indicates that the project is secure despite the company reassessing other investments.

As reported, Kojima Productions’ horror game will still be published by Xbox, even as the console maker decides to sever ties with other in-progress titles during a recent “reset.” Kojima shared his vision for OD, stating, “I wanted to go beyond the limit of the ‘scariness’ that other games had reached. It’s a single-player game, and I wanted to make it as scary as possible. But for those who might stop playing when it gets too intense, I’ve devised a system to help them continue. I can’t reveal too much, though, as it might give away too much about the system!”

Details about the project, which was initially greenlit by Phil Spencer, remain scarce, including gameplay mechanics and a release date. The game was first teased at the 2023 Xbox summer showcase and fully unveiled at the 2023 Game Awards. It boasts contributions from Hollywood director/writer Jordan Peele and features actors like Sophia Lillis, Hunter Schafer, and the late Udo Kier. Plus, it’s being developed using Unreal Engine.

OD’s announcement was a strategic move by Microsoft to assert its commitment to supporting innovative and ambitious games led by creative minds. However, the landscape shifted with the Activision Blizzard acquisition in 2023, followed by significant layoffs at Xbox. Over the past year, Microsoft has stepped back from several projects.

Last June, a publishing deal with Brenda and John Romero for their new game was canceled. Reports also surfaced that Assassin’s Creed creator Patrice Désilets had a partnership with Xbox for his action game 1666: Amsterdam, which ultimately fell through. Recently, Microsoft confirmed it would no longer publish IO Interactive’s upcoming Project Fantasy, which had already been scaled back in previous cuts.

A Microsoft spokesperson stated, “We’re not reducing our overall investment in games. 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.”

This sentiment was echoed in a memo from Xbox CEO Asha Sharma, who noted the need for better funding of their major franchises to compete effectively. She emphasized the importance of a steady stream of first- and third-party exclusives and new IPs for future success, indicating a reassessment of investment priorities over the next five years.

A recent report suggests that Sharma plans to allocate more resources to blockbuster franchises like Halo and Fallout while scaling back investments in other areas. If this strategy holds, it may take years before any noticeable changes emerge. Meanwhile, numerous Xbox studios and potentially over 1,000 employees face uncertainty.

Brenda Romero expressed concern about the industry’s current state, likening it to the crash of the ’80s, stating, “I feel like the industry’s in a really horrible place. This is definitely crashier.”