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Matt Booty: There Is No Directive From Microsoft Forcing Xbox To Use AI

February 25, 2026 by Ryan Parreno

Video game companies already use AI a lot anyway, for decades now.

Matt Booty has debunked a longstanding rumor about Microsoft and Xbox.

He said this in an interview with Windows Central:

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.

Microsoft’s gaming division previously revealed MUSE, an experiment to use generative AI to recreate classic games.

We’ve seen a variety of rumors about Xbox and Microsoft Gaming’s use of AI. A Seattle Times Report claimed that Microsoft laid off developers last year to cover their AI costs.

Gene Park also claimed from his own sources that Phil Spencer was convincing his higher ups to take bigger bet on videogames just before they pivoted to AI.

Matt’s statement means that we can disregard the worst of these rumors. While their parent company is still betting hard on AI, they don’t have to follow along at all.

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