Xbox CEO Asha Sharma on Sony Rivalry, Collaboration and Kojima’s PHYSINT Deal

It's a short exchange, but it comes at an awkward time for Xbox. The division has laid people off, restructured and faced spin-off rumours in recent months. It has also taken over publishing for one of the biggest projects PlayStation had announced.

What Sharma actually said​

The line everyone is quoting has been reported by several outlets. Beebom reports that Sharma told the Times "Competition and collaboration can coexist." Pure Xbox and VGChartz carried the same quote.

What prompted it is less clear, and it matters:

• Pure Xbox treats it as a general comment on the Xbox–PlayStation relationship.
• VGChartz reports that the remark came while Sharma was discussing TV shows and movies, and that Xbox will keep working with Sony in that area.
• Beebom takes it as a signal that Kojima's work with Sony would continue. That's an interpretation, not a direct quote.

The VGChartz version is the narrowest, and it fits Sharma's wording best. She seems to have been talking about working with Sony across entertainment media, not announcing a new games partnership. Nothing reported so far describes a new formal agreement between Microsoft and Sony.

Section summary: Sharma said competition and collaboration can coexist. Coverage suggests she said it while discussing film and TV. It is not an announced Sony–Xbox deal.

The PHYSINT apology moment​

The livelier part of the profile is about PHYSINT. The Times wrote that "Sharma had a rare moment of speechlessness when discussing the deal for Kojima's upcoming stealth game Physint. She laughed at the idea of apologizing to Sony before shrugging and saying she was happy Kojima chose to work with Xbox."

That's the reporter's description of her reaction, not a direct quote from Sharma. Still, the message is clear: she has no regrets.

Here's why an apology even came up. According to Windows Central's September 10 report, Microsoft had landed the contract to publish Physint, Hideo Kojima's long-awaited follow up to Death Stranding, even though PlayStation had originally announced the game. When the game was first revealed, PlayStation Studios head Hermen Hulst called it part of the PlayStation and Kojima Productions partnership.

When the switch was announced on Xbox Wire, Sharma said: "Creators have choices about where and how they bring their ideas to life," and added that Xbox was "honored" Kojima had chosen to work with it. Kojima said the deal expands his studio's relationship with Xbox beyond OD, the horror game Xbox was already publishing. Windows Central also reported that the two sides are collaborating on film and television.

Pure Xbox pointed out that PlayStation Studios walked away from the project before Xbox stepped in, so it's not obvious what Sharma would be apologising for. Beebom cites Bloomberg's Jason Schreier, who earlier reported that Sony dropped the game over budget concerns. The details of that decision haven't been confirmed publicly by either company, so treat them as reported, not settled.

Section summary: Sharma laughed off the idea of apologising for PHYSINT. Xbox took over publishing a game PlayStation had announced, and film and TV are part of the Kojima deal.

The budget question​

The profile also touched on the cost of the deal, which had been argued over online for about a week. Beebom notes that some reports put the budget above $400 million, while others disputed that number. The Times profile says "The agreement was substantially below what Xbox would typically spend to develop a premium game."

Beebom attributes that statement to Sharma. Pure Xbox attributes it to the Times' sources. Either way, the claim has clear limits:

• It is a comparison, not a figure. No budget number has been disclosed.
• Nobody has said what counts as a "premium game" for Xbox.
• Beebom reports the deal includes film and TV rights. That makes the total package harder to compare with a normal game budget.

The fair reading is that the $400 million figure now looks less likely. The actual cost is still unknown, and so is how it compares with anything Sony may have been prepared to pay.

Why the remark matters to Xbox players​

This isn't just corporate small talk. The same interview produced another headline. Kotaku reports Sharma told the Times "Xbox is not for sale," as questions grow about whether the restructuring is setting the division up for a spin-off. She added that Xbox would "look at the right partnerships, the right operating model and everything needed to achieve that."

Seen that way, "competition and collaboration can coexist" fits a broader approach. Xbox is keeping its options open with partners, including its biggest rival. The recent record backs that up. Pure Xbox notes that Halo and Gears have come to PS5, while Helldivers 2 arrived on Xbox. Windows Central adds that the first Death Stranding launched on Xbox with Xbox Play Anywhere, so buyers get both the console and PC versions. Microsoft's multiplatform shift is already happening.

For people who play Xbox games on Windows PCs, the practical takeaways are modest but real:

• Xbox isn't pulling back from multiplatform releases. Nothing in the profile suggests a return to strict exclusivity.
• Microsoft publishes PHYSINT now, alongside OD. That makes Kojima Productions one of Xbox's most prominent third-party partners.
• Details on Kojima releases for PC and other platforms haven't been confirmed. Windows Central speculated that Death Stranding 2 may eventually come to Xbox. Nobody has announced that.

The skeptic's view​

Some caution is warranted. "Competition and collaboration can coexist" is the sort of phrase any executive can say without committing to anything. If the VGChartz framing is right and it was about film and TV, it says even less about games.

The PHYSINT move also cuts against the friendly tone. Taking over publishing a game PlayStation had announced is competitive, whoever walked away first. Sharma's laugh may be the most honest part of the exchange.

Pure Xbox wondered whether both companies might stick more to their own platforms once Project Helix and PS6 arrive. That's speculation. Nothing in the reported interview confirms future exclusivity plans, hardware strategy or release decisions for either side.

The bottom line​

Here's what can be verified. Sharma publicly called Xbox and PlayStation competitors that can still work together, apparently while discussing film and TV. She showed no regret about Kojima choosing Xbox for PHYSINT. The Times profile says the deal cost substantially less than a typical premium Xbox game, but gives no figure. She also said Xbox isn't for sale and that it wants the right partners.

What we don't know is just as important. There's no new Sony–Xbox agreement, no PHYSINT budget, and no clear idea how the two companies will deal with each other in the next console generation. For now, Xbox and PlayStation are still rivals who will do business when it suits them.

Update: New report puts Xbox’s Physint payment potentially below $200 million (October 1, 2026)​

Xbox’s payment for Physint could be below $200 million, according to The Game Business’s Christopher Dring, whose October 1 reporting was highlighted by GamesRadar+. Dring says he now understands Microsoft is paying substantially less than the previously circulated $400 million figure, although he presents the lower threshold as a possibility rather than a confirmed price.

Dring also clarified the origin of the larger number: it was a rumour circulating around Tokyo Game Show that he mentioned on a podcast, not verified reporting. His latest account therefore adds a more specific estimate to the budget discussion, but it does not establish an official contract value. The distinction matters: a reported publishing payment should not automatically be treated as the game’s complete development budget.

For Windows players, this is a financial clarification rather than a release announcement. The new report provides no PC launch date, Windows system requirements or confirmed platform commitments for Physint. It also does not resolve how much of Microsoft’s reported payment relates to the game versus the wider rights package.