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Xbox boss Asha Sharma has been speaking to Fortune about the wider industry and the future of gaming hardware, and it should come as no great shock to learn that AI came up as a topic at one point.
Sharma's previous role was President of Microsoft's CoreAI product, so you'd imagine she'd be quite bullish about the impact of the highly controversial technology – but, as she has proven in the past, she's keen to see it applied in ways that make sense for players.
"AI has always been part of gaming," she notes. "The GPU wasn't invented for researchers to train neural nets. It was invented for better spaceships and dragons and better frame rates. And so in many ways, I think that gaming will continue to lead the way on a lot of this technology."
The Xbox CEO then references how her previous experience colours her perspective:
"Coming from the AI world before this, I have a bit of a different point of view. I don't believe world models will replace AAA games. I believe that AI can certainly invent a new genre of games, but they're just going to be different. If you think about GitHub CoPilot, or Codex, or Claude Code, then you can maybe single-shot a Vampire Survivor game because the parameters are pretty defined and understood. But when it comes to economies and matchmaking and social dynamics, this is a systems problem, not a content problem.
In my first 100 days, I've really come to appreciate the depth and the complexity of art. And so I think AI will be really important in production pipelines and prototyping and things like that. I think it would be really important for new forms of content that come up. But I don't necessarily see world models being the replacement for 50 to 80 hours of gameplay in a really complex universe that gets created in AAA."