Vibe-coded games playable in web browsers have exploded in popularity recently, and amid a deluge of ports and remasters created with generative AI, Xbox is responding by creating Xbox Labs. The new branch of Xbox is described as an initiative designed to get more people playing games–especially on web browsers–but curiously, there’s no mention of AI at all in the announcement.
“In recent weeks, we’ve seen games rapidly decompiled and rebuilt to run on hardware they were never originally designed to support,” Xbox CEO Asha Sharma wrote. “Windows PC builds have been translated to run on Apple Silicon or ported to run inside a browser through WebAssembly and WebGPU, the latter now approaching 90% global browser support. Perhaps more surprisingly, we’ve seen many of the biggest games in the world have been remixed into the source code of another. These experiments challenge long-held assumptions about our industry: the tether between software and hardware, the boundary between creation and play, and how people discover and experience games.”
Sharma added that Xbox CTO Scott Van Vliet and a small team have been tasked with turning “turn emerging ideas” into experiences for consumers and developers. The idea of banking heavily on AI to create games is still a controversial topic in the west–whereas Asian markets have heavily pivoted toward it. Dragon Quest creator Yuji Horii is a big proponent of the technology, and other studios have begun incorporating it into their workflows to help combat the rising development times and costs of making a video game in the modern age.
Xbox Labs could be an effort to change public opinion on AI, given that many of the projects popping up online are vibe-coded remasters of older games like The Simpsons: Hit and Run, or mash-ups creating a chimera out of IP like Minecraft and Elden Ring. Xbox’s parent company, Microsoft, also has a stake in the AI arms race, as its significant investments in the tech have seen a surge in profits. Alongside Xbox Labs, the company also announced the formation of XP, a new subdivision dedicated to expanding Xbox’s presence through film, television, and live events.
Unreal Engine and Fortnite maker Epic Games is also making a huge pivot toward an AI-first game-development model, and the company has reportedly delayed an unannounced shooter featuring Marvel and Star Wars characters.