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Ka-pi96 said:

Did Death Stranding flop then? Surely if it had done well then Sony would've wanted to continue working with him.

Sony do not own kojima production so MS could have just handed over a bigger check. These are talks so nothing is confirmed. Gamepass could also be of appeal in order to reach a wider audience.

Regarding Death Stranding, it wasn't a flop but I could see how Sony might  not want to put similarly niche titles at the forefront of their marketing. For how expensive it looks, its extremely polarising and unlike all the other games Sony has been pushing.