Xbox CEO Asha Sharma announces the creation of “Xbox Labs,” a new initiative within Microsoft’s Xbox team. The unit is tasked with turning “emerging ideas” and new technologies into experiences that players and developers can try.

According to the outlets, Xbox Labs is positioned as a small, cross-functional group drawn from within the company, including game makers, engineers, and scientists. Sharma’s message links the initiative to recent developments in the game-modding ecosystem, including the rapid growth of AI-powered mods and increased remixing and porting of games. Xbox Labs will focus on rapid development, iteration, and testing of tools, products, and features, with results evaluated based on user and creator feedback.

While reporting agrees on the purpose and structure of the new team, the coverage emphasizes slightly different context: some highlight the broader “new technology” framing, while others point more specifically to how AI-enabled modding and game recompilation are reshaping what Xbox sees as feasible. All sources describe an approach that includes building openly and measuring success by engagement and creative activity.