Hideo Kojima’s OD Still in Development with Xbox Despite Recent Layoffs

 

Amid a wave of project cancellations and layoffs at Xbox, Hideo Kojima’s OD, a highly anticipated horror game, remains in active development. This news brings relief to fans worried about the fate of this ambitious title. In this article, we explore the latest updates on OD, its significance, and what it means for Xbox’s gaming future.

 

OD Survives Xbox’s Project Cancellations

Recent reports indicate that Xbox has undergone significant restructuring, with 9,000 layoffs and the cancellation of several high-profile projects, including Perfect Dark, Everwild, and third-party collaborations like those with Romero Games. Amid these cuts, speculation arose that OD, a horror game directed by the legendary Hideo Kojima, might also face cancellation. However, a new report by Jez Corden from Windows Central confirms that the partnership between Kojima Productions and Xbox Game Studios remains intact, and OD is still in early development.

Unlike other projects, such as Contraband, whose status remains uncertain after its trailer was removed from YouTube, OD has emerged unscathed. Corden notes that while he couldn’t confirm Contraband’s fate, sources indicate that OD continues to progress, leveraging Xbox’s cloud technology to create a groundbreaking experience.

What is OD?

Unveiled at The Game Awards 2023, OD (originally leaked as “Overdose” in 2022) is a horror title developed by Kojima Productions in collaboration with Xbox Game Studios. The project features a unique partnership with acclaimed director Jordan Peele, known for films like Get Out and Nope, who is contributing to the game’s narrative. The teaser trailer showcased actors Sophia Lillis, Hunter Schafer, and Udo Kier, but little else has been revealed about the game’s storyline or gameplay.

Kojima has described OD as a “game like no other,” hinting at the creation of an entirely new genre in gaming. Built on Unreal Engine 5 and utilizing Xbox’s cloud technology, the project aims to push creative boundaries, offering a “one-of-a-kind experience.” However, development has faced delays due to the SAG-AFTRA strikes last year, which also paused work on Kojima’s other project, Physint.

Why OD Matters

Hideo Kojima, renowned for iconic titles like Metal Gear Solid and Death Stranding, is a visionary in the gaming industry. His partnership with Xbox for OD was a significant coup, given his reputation for innovative storytelling and gameplay. The game’s survival amid Xbox’s recent layoffs is a testament to its importance to the company’s portfolio, especially as Microsoft navigates a challenging period in its gaming division.

The use of Xbox’s cloud technology is another key aspect, enabling Kojima’s team to explore ambitious concepts that might not be feasible on traditional platforms. This aligns with Kojima’s goal of creating a genre-defining experience, potentially reshaping how players interact with horror games.

Xbox’s Turbulent Times

The gaming community has been shaken by Xbox’s recent layoffs, which affected studios like Turn 10 (Forza Motorsport) and The Initiative (Perfect Dark), as well as the cancellation of a ZeniMax Online Studios MMO. These cuts have fueled fan frustration, with some canceling their Xbox Game Pass subscriptions in protest. Despite these challenges, Xbox has assured fans that titles showcased at its June 2025 Showcase, including Marvel’s Blade and State of Decay 3, remain safe. OD’s continued development further signals Microsoft’s commitment to select high-profile projects.

What’s Next for OD?

While OD is still in its early stages, its survival offers hope for fans eagerly awaiting Kojima’s next masterpiece. The lack of concrete details keeps the project shrouded in mystery, but Kojima’s track record suggests that OD could redefine horror gaming. With Physint, a PlayStation-backed title, also in development, Kojima is juggling multiple projects, with rumors that these could be his final games before transitioning to filmmaking.

The gaming community is buzzing with excitement, as evidenced by posts on X praising the continued collaboration between Kojima and Xbox. However, some uncertainty lingers due to conflicting rumors about the project’s status earlier this week. For now, OD remains a beacon of hope amid Xbox’s turbulent times.

Conclusion

Hideo Kojima’s OD is a rare bright spot in Xbox’s recent wave of layoffs and cancellations. With its innovative approach, star-studded collaboration, and backing from Xbox’s cloud technology, the game promises to be a groundbreaking addition to the horror genre. As development continues, fans can look forward to more updates on this enigmatic project. Will OD live up to Kojima’s lofty ambitions? Only time will tell, but its survival is a win for gamers everywhere.