Xbox CEO Asha Sharma Bets on AI With XBOX LABS, Admitting the Experiments Could Challenge Xbox’s Own Business Models

Xbox CEO Asha Sharma dropped yet another announcement yesterday, as she revealed the foundation of a new division called XBOX LABS. The dynamic Chief Executive Officer explained that Chief Technical Officer Scott Van Vliet (who used to lead AI infrastructure at Microsoft's Azure OpenAI before joining Xbox in May 2026) will lead a small group of game creators, engineers, and scientists who are being tasked with turning emerging ideas into things Xbox players and developers can experience. In case you're wondering, yes, this initiative will most definitely be powered by AI assistance.