Asha Sharma forms ‘Xbox Labs’ in response to explosion of AI-powered mods and ports

Microsoft has formed ‘Xbox Labs’ in response to the recent explosion in AI game modding and recompilations. In recent weeks, modders have increasingly shared game ‘mashups’, like Mario platforming in Elden Ring , and unlikely ports, like Call of Duty running in a web browser, all powered by generative AI tool Claude’s new Opus 5.5 model. In a note sent to staff on Tuesday, Xbox CEO Asha Sharma said the wave of AI-generated creations has changed assumptions around the boundaries of game development, and announced a new group tasked with experimenting with such emerging ideas.