
Microsoft is looking to expand its AI endeavors into its gaming arm, as it announced today it is partnering with Inworld AI to create game development tools for Xbox that will allow developers to create AI-enhanced characters and more.
Spotted by The Verge, this multiyear partnership will allow Xbox developers leverage artificial intelligence as part of their game development. Specifically, Inworld AI will leverage this partnership to prioritize development on an AI design copilot as well as the AI character runtime engine, which can be used to create new storylines, among other things.
Inworld AI's character engine should sound familiar to some, as veteran modder Bloc told us in an interview in August that he used the Inworld Character Engine tool to create the AI-powered GTA 5 story mod Sentient Streets before Take-Two shut it down.

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.
Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.
To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Thanks to the slip-up of an artist working on the title, we now have more evidence that a new Injustice game is in the works.

Spiders: "We're going to cut straight to the chase so you're not left wondering: After a long period without clear answers, we have received confirmation that Spiders is being liquidated.
What does it mean? This means the company as a whole no longer exists. We'll cease our functions immediately. The planned DLC will release via Nacon, and then-- well, that's it.
We're sorry that it's come to this and would like to thank each and every one of you for your support over the years.
If you have any questions or run into issues with your games, please contact Nacon directly as we'll no longer be able to reply."
more AI generated empty planets for Starfield!
As a developer myself, I am fearful that AI will make devs redundant in the eyes of Publishers.
Ewwwwww.......
Another Win. Keep it coming xbox!
The day the XBox sent a Terminator into the past to kill Sara Connor.