Kojima Productions’ OD Remains in Development With Xbox Game Studios – Rumor

The Death Stranding 2 director's horror title allegedly sought a new publisher after Microsoft's recent wave of layoffs.

Posted By | On 04th, Jul. 2025

OD_Kojima Productions

With layoffs at various Xbox studios and the cancellation of long-in-development projects, rumors emerged about trouble around Kojima Productions’ OD. The project is very much alive, but it was allegedly seeking a new publisher following Microsoft’s layoffs.

According to Jez Corden of Windows Central, who spoke to sources, that currently isn’t the case. “Currently” is the key word since Everwild was cancelled despite Microsoft Gaming CEO Phil Spencer touting giving “those teams time in what they’re doing.” Rare is also reportedly set to undergo broader restructuring, which could result in layoffs.

Published by Xbox Game Studios, OD is a horror title developed on Unreal Engine 5, which leverages the former’s cloud gaming tech (with actor/director Jordan Peele involved in writing the narrative). Last year, Kojima said it’s a game “like no other” while also admitting it presented “a new challenge for me.”

Development faced trouble due to the SAG-AFTRA strikes, resulting in the suspension of scanning and filming. The strike was suspended last month after the union reached a tentative deal with various video game companies, which means work on OD should have already resumed. Stay tuned for updates in the meantime.


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