Xbox CEO Asha Sharma says Microsoft remains open to working with PlayStation, despite Xbox taking over Hideo Kojima’s Physint after Sony dropped the project.

Speaking to The New York Times, Sharma addressed the relationship between Xbox and PlayStation as Microsoft shifts its strategy back toward a stronger focus on exclusive games.

“Competition and collaboration can coexist,” Sharma said.

Her comments suggest Xbox isn’t completely closing the door on future partnerships with Sony, even after the two companies recently found themselves on opposite sides of the Physint deal.

Xbox Reportedly Got Physint for Much Less Than Sony

Physint was originally being developed in partnership with PlayStation before Sony dropped the project and Xbox stepped in as its new publisher.

The New York Times reports that Microsoft’s agreement with Hideo Kojima is “substantially below” typical AAA development costs and also includes movie and television rights for the IP.

Separate reporting from The Game Business suggests Xbox could be paying less than $200 million for Physint, significantly below previous rumors of a roughly $400 million deal.

Despite Xbox’s renewed focus on exclusives, Microsoft still has existing PlayStation commitments. Forza Horizon 6 and Fable are expected to release on PS5, while franchises such as Call of Duty and Minecraft remain multiplatform.

As for Physint, Kojima previously said he doesn’t know whether the game will eventually release on PlayStation.