Xbox CEO Hints Its Studios Will Heavily Use AI to Make Future Games

Xbox CEO Asha Sharma has suggested that smaller teams could use new technology to create games that currently require hundreds of developers and hundreds of millions of dollars. Though she did not name generative AI, her remarks imply Xbox studios may rely on it more, as Microsoft seeks to address rising game development costs and risks.

Sharma made the comments in a post marking Xbox’s 25th anniversary, amid a company “reset” that has included more than 1,000 job cuts and studio sales. She previously promised Xbox would not flood its ecosystem with “soulless AI slop”, while also launching Xbox Labs, an experimental division associated with AI-generated code. A 2025 Stack Overflow survey found 84% of polled software developers used AI tools in some capacity.