Hideo Kojima’s Xbox Horror Game ‘OD’ Remains in Development Despite Microsoft’s Project Cancellations

Microsoft’s Layoffs Impact Game Development Landscape

Microsoft’s recent decision to lay off over 9, 000 employees has caused several significant cancellations of anticipated game projects. Notably, among the casualties are ZeniMax Online’s new MMO, the Perfect Dark reboot, Rare’s Everwild, and most recently, Contraband from Avalanche Studios. However, one project that remains secure amidst these cuts is OD, a horror game currently in development by Hideo Kojima in collaboration with Xbox, as confirmed by a Microsoft spokesperson.

Confirmation of OD’s Ongoing Development

This update comes courtesy of Jason Schreier from Bloomberg, who inquired about OD’s status while reporting on the Contraband situation. He received the assurance from a Microsoft representative that OD “is still in development, ”raising hopes among fans and industry watchers about this intriguing project.

OD, the collaboration between Xbox and Hideo Kojima, is still in development, a Microsoft spokesperson tells me.

— Jason Schreier (@jasonschreier.bsky.social) 2025-08-07T17:07:01.814Z

Background of OD and Its Ambitious Vision

First unveiled at The Game Awards 2023, OD generated considerable excitement, dominating headlines during the event. Since its announcement, however, updates have been sparse. Kojima has occasionally hinted at the project, describing it as a “risky”endeavor that aims to deliver an experience unlike anything players have encountered before. He acknowledges that OD may elicit mixed reactions, emphasizing his commitment to challenging player expectations.

Collaboration with Jordan Peele

Additionally, the acclaimed horror director Jordan Peele is reportedly collaborating with Kojima and Xbox on OD. However, detailed insights into Peele’s role within the project remain scarce, mirroring the limited information available about OD itself.

Looking Ahead

With the recent launch of Death Stranding 2: On the Beach now on store shelves, there is optimism that fans will soon receive more concrete updates regarding OD’s development trajectory. As anticipation builds, many are eager for an official announcement clarifying the future of this ambitious horror title.

For those interested in more details, you can find additional information in this source.