Phil Spencer has stated that Xbox is not imposing any requirements for creatives to use AI. Additionally, the company is experiencing positive growth in the Japanese market

Xbox Series X console — Image credit: Billy Freeman on Unsplash

Phil Spencer, CEO of Microsoft Gaming, stated that the company primarily utilizes artificial intelligence for security measures and moderation on Xbox Live, rather than for creative processes. During an appearance at the Paley International Council Summit in California, Spencer noted the company's significant progress in expanding its presence in Japan, a market traditionally challenging for the brand.

In the event covered by IGN, Spencer explained that AI's main role within the company is to moderate voice and text interactions, particularly to safeguard child accounts by ensuring parental control over communications. He acknowledged that while this application might not be glamorous, it is essential for security.

Regarding the broader application of AI in creativity, Spencer remarked that decisions are left to the discretion of individual teams. He emphasized that forcing teams to adopt specific tools is not efficient. Instead, the goal is to offer tools and allow their use to develop naturally within the teams.

Spencer showed interest in AI’s capability to enhance content discovery through user history-based recommendations but clarified that there are currently no plans to integrate AI into content production. He explained that their focus is more operational, aiming to explore creative opportunities without immediate production goals.

Microsoft's stance contrasts with EA's recent declaration of a partnership with StabilityAI, aiming for a comprehensive AI integration, a strategy met with internal resistance. A Financial Times report highlighted that cost savings from AI are a key part of EA's potential acquisition by a group including Saudi Arabia’s Public Investment Fund.

At a prior event, Tokyo Game Show (TGS), as reported by Famitsu, Spencer highlighted Microsoft's strategic efforts in Japan, including projects with Ninja Gaiden 4 and Hideo Kojima's OD. He noted an impressive 20% increase in gameplay hours on Xbox in Japan, which spans console, PC, and cloud gaming.

While acknowledging the increase is from a low base, due to Xbox's historically limited success in Japan, Spencer pointed out that the company is redefining what the Xbox platform encompasses. A significant move in this direction is the announcement of Halo's debut on PS5, signifying a shift towards a more inclusive platform approach.