Xbox Labs logo with the tagline Let's play with what's next

Xbox Labs is a new, small Xbox team of game makers, engineers, and scientists whose whole job is turning experimental ideas into things players and developers can actually try. Xbox CEO Asha Sharma announced it Tuesday in a memo to staff posted on Xbox Wire, and she says the group will build in the open and judge itself by one number: whether more people are playing and making games.

Why Xbox is doing this

Sharma points at stuff the community has been pulling off lately. Games are getting decompiled and rebuilt to run on hardware they were never made for, Windows PC builds are being translated to run on Apple Silicon Macs or inside a web browser through WebAssembly and WebGPU, and some of the biggest games around have been remixed into other games’ code. Her take is that these experiments are good for players even when they poke at Xbox’s own business models, so Xbox would rather help shape them than watch from the side.

The other piece is AI. Sharma notes that coding became the first big job for AI agents because code can be written, run, and tested, and games share a lot of those traits. Xbox says people spend more than 72 billion hours a year playing its games, and it wants its studios involved in how these tools get used. Xbox also says it will share the tools Labs builds with developers across the industry.

Who runs it

Sharma’s memo says she asked Scott to stand the group up, and GeekWire reported that he is Xbox CTO Scott Van Vliet. It’s the second new group in a week, after the XP division for movies, merch, and events, and it follows the Helix town hall where Sharma laid out her plans for Xbox.

What it doesn’t change

Nothing ships today. There are no Labs projects, release dates, or prices yet, and Sharma says the core priorities stay the same: great games, Xbox hardware, and taking care of the series and communities Xbox already has. Labs is meant to run alongside that work, not replace it.

The interesting part is the attitude. A platform holder saying fan ports and remixes are good for players is a different tone than we usually hear, so we’ll be watching for the first thing Labs actually puts in people’s hands.