Feels like they are trying to put a positive spin on it, “Don’t worry, we’re just shutting down the bad bits and keeping the good bits”.
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After seeing that Open AI Sora demo is there really a need for Microsoft to go after more acquisitions. There is a possibility that AI might be close if not at a place it could do most development at a high rate. Sara Bond has said AI will democratize gaming even for those not schooled in it. I will say now would be one of the best times to sell if you’re a publisher or studio as it seems Microsoft will incorporate AI development into Copilot. Xbox’s Sarah Bond Says AI Will Be Great For Game Development - GameSpot
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AI might eventually help speed up game development but we will still need humans (atleast for now) to think up new ideas, IP and game mechanics etc.
Talking of IP - humans are typically a creature of habit and are attracted to something familiar (existing IP).
Based on the above I would still say yes.
Then there’s this whole new ‘Xbox Everywhere’ strategy, if the long term goal is that all their games are simply ‘timed’ exclusives, then they will likely want ramp up their lineup so they have a continuous flow of ‘timed exclusives’ to make Xbox/GamePass irresistible.
Bringing in even more teams (through acquisitions) could ensure they have a big exclusive every month (their original target was each quarter). If that were to happen I think people would start flocking to Xbox (even if they are timed exclusives).
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Maybe I’m being pedantic, but I think there’s no “might” about it. It’s a sure thing at this point. Between code, art assets, video for cut scenes, and even voice acting, there’s really no aspect of game development that AI can’t help with.
This video is several months old, and a very basic game, but given how in its infancy AI still is, it’s very impressive what it can already do.
And that’s 10 months ago. Fast forward 10 years and the mind boggles.
edit: Moments after posting the above I came across this. Seems apropos.
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Yes you’re right, the message I was trying to get across was that we would still need humans for the creativity side of it. I think it will be a very long time until AI will be able to create anything from scratch which is comparable - but yes maybe in 10 years.
Even in this example he is basically asking AI to essentially copy an existing game (Flappy Bird) which it often struggled to comprehend, it is still very impressive though!
Sometimes it’s just unique mechanics like the Nemesis system in the Middle Earth games, Gravity gun in Half-Life and mutating weapons in Fable 3 etc.
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Complete agreement. AI I’m sure will be quite useful even with some idea generation, where two or more concepts are merged into a new one. Something human creatives do on the regular. But for ideas that genuinely feel brand new and 100% innovative, I have to imagine we’re a ways off.
For a lark I just asked Bing to “suggest an original idea for a videogame that will have mass market appeal.” I was purposely vague, to test its creativity.
This is what it came up with:
Not particularly unique or original, but I have to admit, I’d like to play that game. 
edit: I also asked for some character art and box art. This is what it made:
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Haha, I must admit that is pretty awesome. The actual game itself however does sound much like many other games.
EDIT: I asked it the same and got the following (sounds like a mix-up between Timeshift and Titanfall 2, so perhaps a bit more unique).
Certainly! Here’s an original video game concept that combines creativity with mass market appeal:
Title: “Quantum Quest”
Concept Overview:
In the not-so-distant future, humanity has unlocked the secrets of quantum mechanics. Players step into the shoes of Dr. Amelia Vega, a brilliant physicist who accidentally discovers a hidden quantum realm—a place where reality bends, time fractures, and parallel universes collide. As Dr. Vega, players embark on a thrilling adventure to explore this mysterious realm, solve mind-bending puzzles, and alter the course of history.
Key Features:
- Quantum Shifting:
- Dr. Vega possesses a quantum wrist device that allows her to shift between different versions of herself across parallel universes.
- Players can seamlessly switch between realities, altering the environment, solving puzzles, and affecting the storyline.
- Each universe has unique physics, challenges, and secrets waiting to be unraveled.
- Dynamic Environments:
- The quantum realm is ever-changing. Rooms shift, gravity fluctuates, and time loops occur.
- Players must adapt to sudden shifts, manipulate their surroundings, and exploit quantum anomalies to progress.
- Imagine a room where walls become floors, and gravity pulls you sideways!
- Temporal Puzzles:
- Puzzles involve manipulating time—freezing objects, rewinding events, or syncing actions across different timelines.
- For example, players might need to freeze a falling object in one universe to create a stepping stone in another.
- Parallel Storylines:
- Dr. Vega’s choices ripple across realities, affecting characters, events, and outcomes.
- Players can explore multiple storylines, each leading to different endings.
- Will you save a crumbling civilization or unravel its secrets for personal gain?
- Quantum Artifacts:
- Collect ancient artifacts scattered throughout the quantum realm.
- Each artifact grants unique abilities, such as phasing through walls, slowing time, or merging with alternate selves.
- Multiplayer Co-op:
- Play with friends! Co-op partners can shift between universes independently.
- Cooperation is essential to solve intricate puzzles and overcome challenges.
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Totally agree my point is Sara is basically alluding to their AI Copilot being capable of doing for games today what it does for art. That is scary. Many sometime were talking about how it would build new Forge maps for players based on their playstyle and so on.
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Hot damn! That game sounds awesome. I also like how you got a lot more gameplay details than I did. Very cool.
Although not a fan of the character art. Lara Croft meets StarCraft? But the game concept is completely up my alley.
It’s interesting that an AI would come up with sci-fi concepts two out of two times. 
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That article makes it clear what Sara is talking about is Copilot being able to for game development what it is currently able to do for art generation. that’s basically a few prompts to build assets and gameplay. When AI can do that what makes you think they will be spending billions trying to acquire publishers and studios? Personnel to handle the work makes sense. I see indie developers gaining a lot from this. as a matter of fact, during the business update podcast Phil and Sara mentioned thousands of developers were working on Xbox games which is an absurd number. I won’t be surprised if something in early stages isn’t already out there with a promise of better backing as they move closer towards the rumored 2026 Nextgen launch.
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Will you look at that. Imagine what an A.I that can interpret all that and spit it out in game form.
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Exactly. It’s coming, it’s only a matter of when.
To quote Reggie Fils-Aimé: My body is ready.
Will exclusives even matter then. If this tech comes with the next Xbox which is hinted at coming in 2026 it will shake the industry to it’s core. I’m also ready but hopeful things will balance out when it comes.
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The implications are profound and industry shaking.
Looking further ahead, it’s not hard to imagine a future where we will all be able to play our own custom games. We just ask our Xbox AI for a game, with however much detail we want, from genre all the way up to individual game mechanics, and it’ll build it for us.
Or, games are still published like now, but infinitely customizable by asking AI for tweaks to how it should work.
Or how about an AI-powered Roblox?
The possibilities are endless.
More personnel is the obvious one, just having a extra tool won’t necessarily mean they can start pumping out more high quality games immediately. Acquiring established studios with the in house talent, expertise and established processes to release high quality products in a timely manner will ultimately still be more valuable in the short to mid term. If these teams can then incorporate AI too they can refine their processes further.
However as we have just discussed above AI will help in the future but who knows how long it will take to get there. Xbox can’t sit on their hands for 5-10 years hoping AI will become good enough to do this or ultimately replace people (and in many ways I hope it doesn’t).
Then again as I said above people are a victim of habit. New IP will always struggle against existing IP. If Xbox can continue to get their hands on popular IP through acquisitions it’s likely going to have a better chance at moving the needle, especially for something like Gamepass.
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My point is they have over 20,000 developers that’s a lot. Thousands of games in development from partners and Sara is talking about A.I democratize games. It’s also why I said now maybe the best time to sell if you’re a publisher or developer. I don’t think it will take 5-10 years for A.I to get where you’re thinking. I think with the speed at which it’s going 3-5years will be my take. If A.I can do in minutes today what the film industry spends years to do. I think the case will be similar for games. Microsoft and Open A.I already seem to be way above Nvidia so i would expect what they show Nextgen to be industry defining.
would love for these guys to do a Halo or Brute Force like this…33 year history masters of the side scrolling/beat em up/platforming games
I think I probably just fall more on the pessimistic side and feel the need for a more human element.
If we get to the point where studios are churning out games on mass it would likely result in market saturation and another ‘video game crash’.
Even then to go back to my previous point people are far more likely to return to a IP/studio they are already familiar with, whereas you don’t have that same certainty with a new IP. I still think if MS has the chance to go after studios/publishers with popular/successful IP (without too much regulatory action) they will.
For example:
EA
- FIFA / FC (325 million copies)
- Sims (200 million copies)
- Need for Speed (150 million copies)
- Madden (130 million copies)
- Battlefield (89 million copies)
- Bejeweled (50 million copies)
- Medal of Honor (39 million copies)
- Command & Conquer (30 million copies)
Take-Two
- GTA (420 million copies)
- NBA 2K (146 million copies)
- WWE 2K (95 million copies)
- Red Dead (86 million copies)
- Civilization ( 69 million copies)
- Bioshock (42 million copies)
WB
- Lego (200 million copies)
- Wizarding World (79 million copies)
- Mortal Kombat (79 million copies)
Ubisoft (after the ABK cloud deal expires)
- Assassins Creed (200 million copies)
- Tom Clancy (82 million copies)
- Just Dance (80 million copies)
- FarCry (50 million copies)
Square Enix
- Final Fantasy (185 million copies)
- Dragon Quest (88 million copies)
- Kingdom Hearts (36 million copies)
Sega
- Sonic (160 million copies)
- Total War (37 million copies)
- Football Manager (34 million copies)
Capcom
- Resident Evil (154 million copies)
- Monster Hunter (97 million copies)
- Street Fighter (53 million copies)
- Mega Man (41 million copies)
- Devil May Cry (30 million copies)
Crystal Dynamics
- Tomb Raider (95 million copies)
Gearbox
- Borderlands (83 million copies)
CDPR
- Witcher (75 million copies)
- Cyberpunk (25 million copies)
Bandai Namco
- Tekken (55 million copies)
- Pac-Man (44 million copies)
- Dark Souls (35 million copies)
All of these have established IP which I’m sure Xbox would snap up if they realistically could (and make sense). These are the types titles which catch people’s attention and draw them to subscriptions like GamePass (which is what they want!).
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https://twitter.com/IdleSloth84_/status/1760080646339526769
Interesting news, wonder if Squanch Games is a potential addition to the Xbox family in the future.
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You know, outside Squanch Games and maybe Asobo Studio , i think Pocket Pair would be an excellent addition to Xbox with Palworld.
Which studios, not publishers, do you lot think are very likely to enter the Xbox Family Outside the ones i mentioned?