Reports about potential Xbox studio closures and game cancellations have prompted questions about the status of Hideo Kojima’s Xbox-exclusive horror game OD. According to a report cited by IGN, a source familiar with Microsoft’s Xbox plans says OD remains in development at Kojima Productions and is still set to be published by Xbox. Other coverage notes that OD was announced during an Xbox showcase in June 2022 and has had limited reveals since. The game is described as featuring Sophia Lillis, Hunter Schafer, and Udo Kier, and being made in collaboration with director Jordan Peele.
The reports of uncertainty come amid broader claims that Microsoft is preparing major layoffs and could wind down or restructure multiple studios within Xbox Game Studios. The Verge report cited in coverage lists at least five studios potentially at risk, including Arkane, Compulsion, Double Fine, Ninja Theory, and Undead Labs, with layoffs reportedly planned around July 6. Separate reporting also points to funding changes affecting other projects. Microsoft has said it is not cutting overall game investment, but changing where it invests and what projects it backs. OD’s release date is not reported.
