Xbox Founder Shares Bleak Outlook for Microsoft's Gaming Division: "Everything Is a Gen AI Problem"

Shortly following the recent announcement that Phil Spencer would be leaving as the head of Xbox Gaming , the division's new CEO, Asha Sharma, released a long statement expressing her distaste for AI slop and her belief that, although "AI has long been part of gaming and will continue to be," games "are and always will be art, crafted by humans and created with the most innovative technology provided by us." Many gamers have been skeptical of these and similar statements now and in the past, but it seems as though industry veteran and founder of Xbox, Seamus Blackley, seems to be convinced that those are empty words, whether Sharma believes it or not. In a recent interview with GamesBeat , Blackley said about Sharma that he believes "her job is going to be as a palliative care doctor who slides Xbox gently into the night," going on to say that assurances like the aforementioned one by Sharma are "just what occurs to people to say when they bring in someone from an outside business into games."

In Blackley's view, Microsoft's bet on AI will result in a lot of the non-AI businesses being sunsetted, and that is what is happening to Xbox under the new CEO. He says that, just like AI has taken over "everything else," it will take over gaming as well, at least at Microsoft, going on to say that "Asha's background is entirely in software as a service and AI. The implicit thing here is that games is going to be AI-driven software as a service." Part of his justification for this belief is that, despite gaming industry veteran, Matt Booty, acting as Executive Vice President and Chief Content Officer, Sharma is an outsider to the gaming industry and doesn't necessarily understand the industry. His concern is that such an outsider, especially one coming from an AI background, can only see gaming in an abstract way. That said, he does admit that there have been outsiders that have succeeded in gaming, but those that have understood that gaming is a content business. He also jokingly says that her statement about the future of Xbox "reminded me of that meme 'Hello, fellow kids!'" and that she would have to figure out what's interesting about gaming.
Read full story