Xbox establishes new division called Xbox Labs

Microsoft has created a new division named Xbox Labs. Xbox CEO Asha Sharma announced the move during a message to her team. She asked Scott Van Vliet, the chief technology officer, to lead the effort. This group will include game makers, engineers and scientists.

The decision follows a rise in AI-powered mods and game recompilations. Video Games Chronicle reported that modders are sharing mashups like Mario platforming in Elden Ring. Other reports noted games remixed into the source code of another title.

Sharma's message highlighted rapid decompilation allowing games on unoriginal hardware. Windows PC builds are translating to Apple Silicon or running inside browsers. Video Games Chronicle noted the work was powered by generative AI tool Claude's new Opus 5.5 model. WebAssembly and WebGPU now approach 90% global browser support.

The division will turn emerging ideas into experiences for players and developers. Sharma said the team will build in the open and learn from what people do. Success will be measured by whether more people are playing and creating. People spend more than 72 billion hours a year playing Xbox games, roughly five times the estimated time spent writing code worldwide.

These experiments challenge long-held assumptions about the industry. Sharma noted the shifting boundary between creation and play. She stated that making great games easier to access is a good outcome for players. This includes giving old games new life.

Despite the new focus, existing priorities remain unchanged. The company has spent 25 years learning how to make great games. Sharma said they are committed to the 4Cs and responsible stewardship of IP. The goal is to explore technology without abandoning work already underway.

A working link to the Xbox Labs website appeared in the announcement. Pure Xbox observed that the site displays a tagline about playing with what's next. It currently allows visitors to enter an email for updates.