Microsoft Creates Xbox Labs to Research AI-Assisted Game Decompilation and Porting
The experimental team will investigate automated code recompilation, cross-architecture translation, and AI agent workloads in games.

Microsoft has formed a new experimental team called Xbox Labs to investigate game decompilation, recompilation, and artificial intelligence-driven porting techniques, according to a report by The Verge (https://www.theverge.com/news/1010406/xbox-labs-game-decompiling-emulation-exploration).
The initiative follows a wave of reverse-engineering and modding projects that use AI models to translate software between incompatible systems. Recent independent projects have adapted Windows PC builds to run on Apple Silicon hardware and brought console games into web browsers using WebAssembly and WebGPU, a graphics standard that now reaches nearly 90 percent browser support globally.
Xbox CEO Asha Sharma described Xbox Labs as a compact group of engineers, scientists, and game creators tasked with developing experimental concepts into working tools for players and developers. The group plans to share its tools and research with external developers across the industry.
Sharma pointed to software engineering as the first major workload for autonomous AI agents, arguing that video games share similar structural characteristics. Microsoft estimated that players spend more than 72 billion hours annually on Xbox games, roughly five times the estimated global time spent writing software code.
While acknowledging that community decompilations and automated porting can challenge traditional console hardware business models, Sharma stated that widening software accessibility benefits players. Microsoft did not respond to inquiries regarding how it plans to address unauthorized uses of its proprietary intellectual property in public decompilation projects.
Sources
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