Xbox Launches XBOX LABS to Explore AI Experiments

Xbox has created a new division called XBOX LABS to explore emerging ideas with help from artificial intelligence. Xbox CEO Asha Sharma announced the initiative, saying its experiments could challenge Xbox’s own business models.

Chief Technology Officer Scott Van Vliet will lead a small group of game creators, engineers and scientists. The team’s task is to turn emerging ideas into experiences that Xbox players and developers can try.

According to Wccftech, Van Vliet previously led AI infrastructure at Microsoft’s Azure OpenAI before joining Xbox in May 2026. The source describes XBOX LABS as AI-assisted, but provides no further detail about its projects, timeline or how the work might affect Xbox’s business models.