Microsoft Pushes Ahead with AI in Gaming
Microsoft is making it clear: AI is a major priority, and the company is rapidly expanding its AI experiments for the Xbox platform.
Last week, Microsoft unveiled its Muse model, an AI designed to generate gameplay. Trained using Ninja Theory’s Xbox game Bleeding Edge, Muse can understand 3D environments and physics, and then react to player interactions.
While Muse is a Microsoft Research project, Microsoft presented it as directly linked to Xbox and its future gaming endeavors. This strategy has fueled debate: some fear the model will be used to replace game developers, while others view it as merely another tool.
I’ve spoken to game developers to understand the reaction to Muse. Many are reluctant to comment on the record, citing career concerns and potential impacts on game deals with Xbox. “Fuck this shit,” was a common response, according to one developer.
In an interview with Wired, developer David Goldfarb highlighted a key concern: the potential empowerment of those who own these tools. “When we rely on this stuff we are implicitly empowering a class of people who own these tools and don’t give a fuck about how they reshape our lives,” he asserted.
This fear – that AI will replace human game creators – isn’t unfounded. A 2024 Game Developers Conference (GDC) survey revealed that nearly half of respondents (49 percent) reported using generative AI tools in their workplaces, with 31 percent using them personally.
Some developers hope that AI models like Muse will be limited to the early stages of game development, potentially creating rough gameplay concepts instead of traditional sketching. However, as these models evolve, the lines between AI and human creation will inevitably blur.
Microsoft CEO Satya Nadella called Muse a “massive moment of wow,” and mentioned in a recent podcast that the company will soon use or train these models to generate games.
Microsoft is preparing to release at least one AI-generated game on Copilot Labs. The company has also experimented with AI-infused minigames developed by Microsoft Research, which utilize generative models, human writers, and reviewers to craft stories and illustrations. For example, one minigame, Rushes, lets players make choices that influence the AI-driven narrative.
These minigames may not be released, but Microsoft could highlight them in the future. The company opted to demonstrate the Muse model during an employee-only town hall earlier this week.
Microsoft will highlight more ways it’s using AI in gaming at GDC next month. Fatima Kardar, corporate vice president of gaming AI at Microsoft, will discuss how AI unlocks new opportunities across the Xbox ecosystem for both players and game creators. Another session will explore how game developers are experimenting with new AI tools.
While many of Microsoft’s GDC sessions will look to the future, Blizzard will also present on how AI assists World of Warcraft developers, such as automating 3D armor fitting or streamlining player feedback analysis through large language models.
Microsoft is now letting its game studios decide how to incorporate AI. “We don’t intend to use this technology for the creation of content,” said Ninja Theory studio head Dom Matthews, in a video accompanying Microsoft’s Muse announcement. Despite this claim, Microsoft-owned Activision confirmed Call of Duty uses AI-generated content.
With the unveiling of Muse, Microsoft has made clear that it intends to be at the forefront of AI in gaming, regardless of any pushback.
