Microsoft forms Xbox Labs to tap AI-powered game ports

microsoft has established an xbox labs group to experiment with decompiling and recompiling games using ai models. the group, led by xbox ceo asha sharma, will focus on turning emerging ideas into experiences for players and developers. this initiative challenges traditional assumptions about the gaming industry, particularly the relationship between software and hardware. xbox labs aims to make games easier to access and allow more players to become creators and co-creators. microsoft sees an opportunity for ai agent use at xbox, especially given the 72 billion hours spent playing xbox games annually.