Although Kojima has shown interest in making small episodic and digital-only games in the past, this could change with the rumored Xbox collaboration. Interestingly, Microsoft hasn't shied away from funding the Xbox department in the last few years, with the recent Bethesda acquisition costing over $7.5 billion. Coincidentally, Kojima Productions have worked on some multimillion dollar projects in the past that had high production values and boasted a Hollywood cast. With Xbox's immeasurable wealth of resources, Kojima Productions could work on its biggest and most complex project to date. If anything, Obisidian's Avowed is a perfect example of what a collaboration of such size and scope could look like.
There is not much known about Obsidian Entertainment's upcoming open-world action RPG Avowed, although the game's initial trailer makes it seem like an ambitious and blockbuster project. Obsidian Entertainment seems like the perfect studio to develop a game of such high caliber. The studio has made some groundbreaking RPGs in the past, but its most notable release is undoubtedly Fallout: New Vegas. Unfortunately, the studio hasn't gotten around to develop such big AAA open-world RPGs since then solely due to limited resources. However, with Microsoft's acquisition, it seems Obisidian has finally gotten the chance to work on a project that would reflect its full potential.
Avowed's initial trailer sets the stage for a fantasy open-world action RPG in the veins of Bethesda's cult classic Skyrim. Whether it's the game's setting of Eora or its first-person combat, Avowed's Skyrim comparisons are evident. This is interesting because Obisidian and Besthesda share many similar traits, one of which is working on Fallout. With Bethesda having its open-world fantasy IP in the form of The Elder Scrolls, it's no surprise that Obsidian is now working on one of its own as well, with Microsoft by its side.
Microsoft's recent moves have been about partnering with the most successful developers and providing them the resources and creative freedom needed to work on their visionary projects. As such, a Kojima and Xbox deal could do wonders seemingly, because Hideo Kojima is one of the most prominent game developers in the world, and it wouldn't be surprising if Microsoft decides to hand him a blank check for his future project.
With Microsoft backing Kojima, the Japanese developer and his team at Kojima Productions could work on a project that isn't restrained by technical and financial limitations. Death Stranding set a good foundation for the Strand genre, but there were plenty of gameplay elements that felt underutilized. Sony never revealed the budget for Death Stranding, so it might have been that the game wasn't massively funded like Sony's first-party titles. It has been stated that, while the game was successful, its cost and profits didn't make Sony happy, but again, that's not really proven. If so, with Xbox's support, things might be different.
It's still too early to assume whether Kojima Productions is collaborating with Xbox for its next game. However, such a deal could be exactly what Kojima Productions, as an independent studio, needs. Avowed is still quite far from its release, but with Xbox attending E3 this year, there is quite the possibility of the game being showcased there.
Avowed is currently in development.