Source: Kojima Productions/505 Games
At this point, you might have heard that Google is closing its Stadia cloud gaming service. One of the things that possibly caused its demise is the lack of blockbuster exclusives on the platform. It got access to big titles like Red Dead Redemption 2, Destiny 2, and Cyberpunk 2077, but these games were available elsewhere. And if the rumours are accurate, Google might have spurned the chance to get an exclusive title from one of gaming's biggest names.
It was reported that Hideo Kojima was reportedly working on a Stadia-exclusive follow-up to Death Stranding. The game had some asynchronous multiplayer elements, where other players could use ladders, roads, and other items you place in the world. However, the planned follow-up was reportedly a fully single-player game. It's being speculated this is why Google cancelled the project.
Google reportedly canned the project after seeing the first mockups in 2020. This sequel was described as an episodic horror title. The company reportedly abandoned the project in the belief that there wasn't a market for single-player games anymore. As pointed out by Engadget, Kojima mentioned in a May 2020 interview that one of his projects had been recently cancelled.