Xbox Will Use A.i. For Next Gen Gaming

Microsoft announces Muse, a new A.I. tool that can generate in-game scenes for future game development.

In light of falling revenue reports, Xbox has been making some bold choices in recent years as it reconsiders its business strategy in the video game industry.

In a video posted by Xbox studios, CEO Phil Spencer unveiled Xbox’s World and Human Action Model (WHAM), dubbed Muse, on February 19, 2025.

Spencer said: “We definitely look at this work as a unique opportunity to kind of leverage the intersection of art and science, which is what video games are, to grow with the creator community. That’s what these tools are about.

“We think there’s a real unique opportunity to use technology to enable creators to do things that they’ve never done before.”

Muse is an A.I model developed by Xbox that generates conceptual in-game scenes and footage. It was designed after processing seven years’ worth of gameplay from the Xbox title, Bleeding Edge, which it then uses to generate new gameplay scenarios.

Muse essentially allows a developer to visualize a conceptual change, such as a map update, and see how that may affect gameplay. Say, for example, a developer wishes to add a new route to a map, Muse would then generate a scenario exploring how players could interact with it.

In the blog post published on Xbox Wire, Fatima Kardar, corporate vice president of gaming AI, wrote: “What’s groundbreaking about Muse is its detailed understanding of the 3D game world, including game physics and how the game reacts to players’ controller actions.” So it’s official: Xbox has, in essence, developed its version of ChatGPT before the release of GTA 6.

The Future of Muse

The WHAM model is currently listed on Hugging Face. In addition, features such as model weights, sample data, and interface are available to download at Azure A.I Foundry. Microsoft has also shared plans to release a short, interactive AI game experience on Copilot Labs in the future.

Katja Hofmann, senior principal researcher at Microsoft Research, said: “A key to this work from the very beginning was to try and understand how we can ground the development of generative A.I. models in an actual understanding of what users need.

“In this case, what are the kinds of model capabilities that would be needed to empower creators to let them explore ideas more quickly, more deeply than they might be able to do with traditional tools.”

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