Hideo Kojima’s upcoming horror game OD is continuing development and will be published by Xbox despite Microsoft’s recent strategic reset of its Xbox business [1, 2, 3, 4, 5]. The reset includes reprioritizing investments and cutting funding for multiple games and studios [1, 2, 3, 4, 5]. Five Xbox internal studios are reportedly at risk of closure: Arkane Lyon, Double Fine, Ninja Theory, Compulsion Games, and Undead Labs [2, 3].
OD is described as a blend of game, movie, and new media, with Kojima himself uncertain if its new system will succeed. Kojima said, "I wanted to do something new. I wanted to do something different. I can't reveal much detail, but it's something that no one has ever seen before. A new game system" [1, 2, 5]. Noted film director Jordan Peele, known for Nope and Get Out, is involved in the project [1, 2, 4, 5].
The cast features Sophia Lillis, Hunter Schafer, and the late Udo Kier, whose scanned likeness was used after his death in November 2025 at age 81 [2, 4, 5]. OD was first announced in late 2023 during the Xbox summer showcase and Game Awards, and new footage subtitled Knock was released in summer 2025 [1, 4].
Phil Spencer, the former Xbox head, originally greenlit OD. His successor, Xbox CEO Asha Sharma, continues to support the game and praised its artistic ambition. Sharma said, "I’ve got great artists and creatives that can pick a great game better than I can, and so I want to give it space, but most importantly, I think it just represents another kind of game" [2, 3, 5].
Microsoft has said it is not reducing overall investment in games. A spokesperson noted, "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" [1, 2, 3]. Despite ending publishing deals for other titles like IO Interactive’s new fantasy RPG, which led to layoffs, Microsoft maintains OD’s development [1, 2, 4].
Microsoft’s reset began in early 2026, pulling funding from several projects and threatening closures of multiple studios [1, 2, 3, 4, 5]. OD remains one of the high-profile projects surviving this restructuring. The next major update on OD is expected as development progresses under Xbox’s continued publishing support.
