“I’ve never been more excited for a technology shift in the gaming landscape”
Microsoft is a big believer in AI, of course, given that the technology behemoth spent a reported $10 billion partnering with OpenAI on future projects, and AI will be baked into every product Microsoft produces. Xbox is included. Tim Stuart, Xbox’s CFO, recently discussed how he anticipates AI will impact the future of gaming at Xbox, and he sees a bright future. He, like previous Xbox executives, did not address any potential negative consequences of AI, such as job loss or displacement.
“I’ve never been more excited for a technology shift in the gaming landscape,” he said at the Wells Fargo TMT Summit. “The last one we did was when we went from discs on consoles to let’s call it online games and games-as-a-service; things like Fortnite and Minecraft, which really changed the landscape of how people play. Mobile games being another one. I think AI is one of those inflection points for us.”
Stuart claims that studios spend millions of dollars on localization, scripting, and other elements for developers, and he believes that “AI can take care of all of that.”
“Stuart claims that studios spend millions of dollars on localization, scripting, and other elements for developers, and he believes that “AI can take care of all of that,” Stuart added that AI can assist with localization and game testing. AI could also help Microsoft find new ways to make money, according to Stuart. Stuart used Minecraft as an example of how AI can be used to learn where players get stuck, but more importantly for the company’s bottom line, where they spend money.
He estimated that there are around 100,000 game developers worldwide, but that with AI, the number of potential game developers could rise into the millions.
“Anyone in this room can be a game developer. The barista at your local Starbucks has an awesome idea for a game, they can use AI to go create a great mobile experience,” Stuart stated. He went on to say that while some AI-generated mobile games may succeed, others may not, and he expects AI to usher in a new generation of game creators in the future.
Stuart believes AI can help consumers develop a greater “love for the game.” He used the example of playing Minecraft and having your character talk to, say, Hermione from Harry Potter using artificial intelligence.
Stuart, on the other hand, said nothing about how AI might impact or displace developers, which is a major concern for many. EA CEO Andrew Wilson recently spoke enthusiastically about the potential for AI to play a significant role in the future of video games, while also acknowledging that some jobs may be lost or displaced.
Prior to this, Xbox executives such as Phil Spencer and Sarah Bond spoke positively about the prospects for AI while avoiding any mention of job losses. Through a partnership with Inworld AI, Microsoft is already in the process of developing games that use AI rather than humans.
Microsoft recently made headlines in the AI space when OpenAI founder Sam Altman was fired and then re-hired. He was expected to join Microsoft’s new internal AI research team, but this did not happen. Microsoft continues to collaborate with OpenAI, and the AI company is reportedly not planning to give Microsoft a board seat, as many had anticipated.