New Xbox leadership insists there's no top-down AI directive from Microsoft

• New Microsoft Gaming EVP and CEO Asha Sharma says she will review past decisions with a focus on long-term lifetime value.
• “The plan’s the plan until it’s not the plan,” she says, signalling openness to strategy changes.
• AI will serve as a production tool, not a replacement for creative talent.

Newly appointed Microsoft Gaming EVP and CEO Asha Sharma has pledged a renewed focus on console hardware and a measured approach to artificial intelligence as she takes the reins from Phil Spencer.

In an interview with Windows Central, Sharma described a “return to Xbox” as a recommitment to the brand’s founding spirit of experimentation and player focus. 

She stressed that console remains central to the company’s identity, despite recent speculation around multi-platform publishing and shifting exclusivity strategies.

"I think that our core Xbox fans and players have invested up to 25 years of themselves in these universes and our console," said Sharma. “I want to make sure everybody knows I'm committed to Xbox, starting with the console."

She added: “We want to invest in reducing the artificial divide between different types of devices that they want to use with us. I think that's going to mean a lot more investment in breaking down the barriers, in helping developers build once and show up across different hardware experiences."

Learning phase 

Sharma said she first needs time to understand the reasoning behind past decisions and assess the data, focusing on long-term value rather than short-term results, while remaining open to revising the strategy if needed.

"Right now, I need to learn, candidly. About the 'why' of these decisions, what we were optimising for, and what the data says about the Xbox strategy today. That's the honest answer," she said. “I'm looking at lifetime value, not just what happened in a previous moment, or in short-term efficiencies and things like that. The plan's the plan until it's not the plan."

Chief content officer Matt Booty also reinforced that Xbox will remain a first-party platform holder, rejecting speculation that Microsoft intends to turn the division into a pure publisher.

"Our studio system is fully built around being first-party. We're not built to just be a publisher," Booty explained. "It is core to our partnership with the Microsoft platform, being involved in early hardware decisions - all the work we've done to get games like Gears of War running great on new devices like the Xbox Ally, and so on." 

Artificial intelligence as a tool

On AI, Sharma drew a clear line against “careless output” or flooding the ecosystem with derivative work. 

“I think that with any new technology, it brings possibilities as a tool, but even more important, especially now we need to draw lines on what we won't do. That's what I attempted to do when I shared my opening letter," she explained. "I will not flood our ecosystem with slop. We won't have careless output, we won't have derivative work."

Booty also added there is no top-down AI directive from Microsoft, with studios free to adopt tools that support, not replace, creative talent.

“In my experience, any time there's a new technology, what happens is there's a need for more specialists, new specialists," said Booty. “It raises the bar on what the expectations are for the quality of the games."

He added: "We've got no pressure from Microsoft, there are no directives on AI coming down. Our teams are free to use any technologies that might be beneficial, whether it's helping write code or check for bugs, things more in the production pipeline. At the end of the day as Asha said, we're committed to art made by people. Technology is only in support of that."