Recently reported news revealed that Xbox has been experimenting with its artificial intelligence capabilities using the underperforming game Bleeding Edge. This initiative aims to create new titles utilizing generative AI technology.

The company has yet to clarify a strong rationale behind its new project, dubbed Muse, although it hints at the potential to assist developers in rapidly prototyping various gameplay ideas. Phil Spencer, the company’s head, has also suggested that this AI could serve a role in preserving older games, a concept that has faced criticism from industry experts as unrealistic.

In an attempt to galvanize shareholders and attract investments, CEO Satya Nadella has disclosed plans for Microsoft to establish “a collection of games that will leverage this technology.”

During his guest appearance on the Dwarkesh Podcast, Nadella explained: “One of our goals is to utilize gameplay data to create games that maintain consistency while generating a variety of representations, all while being compatible with user modifications.”

The concept video showcases an AI-generated version of Bleeding Edge running at 2005 YouTube resolution and approximately 10fps. Players will have the ability to introduce and manipulate objects within the game, enhancing its interactivity.

Nadella further elaborated that the company plans to enhance the AI training with additional software inputs, integrating its capabilities into upcoming games.

“Soon, we will have a diverse catalog of games that will begin employing these models and commence gameplay testing,” he asserted.

As Microsoft shifts towards being a third-party publisher, any technology they implement could very well find its way into PS5 games, making for an interesting future.

Despite the lingering skepticism regarding the potential outcomes, Nadella remains enthusiastic about the project.

He exclaimed, “When Phil Spencer first demonstrated it to me, he used an Xbox controller, and I saw the model respond to the input, maintaining the game’s integrity—this was a watershed moment. It felt similar to the first encounter we had with ChatGPT’s sentence completions or the artistic capabilities of DALL-E; this is another groundbreaking moment.”