This virtual assistant is designed to handle online support queries and arrives amid Microsoft CEO Satya Nadella’s broader shift to make AI central across the company—a strategy that, until now, had largely excluded Xbox.

This has been the case primarily because of a negative perception of AI features from gamers and creatives, the report added.

However, Microsoft had been using AI models only for moderating Xbox for years, and hasn’t been in a rush to integrate Copilot with it for example.

Apart from the new chatbot, Microsoft will also be updating the Xbox dashboard with AI-powered natural language search soon, the report read. This can for example, let users search for something like “puzzle games for kids,” along with handling misspellings and acronyms.

Microsoft’s focus towards AI-powered gaming will be slow, but eventual. It partnered with Inworld AI last year to develop Xbox tools that can let developers create AI-powered characters, stories, and quests, according to the report.

This comes at a time when Sony’s PS5 Pro console went on sale recently with a new AI-powered PlayStation Spectral Super Resolution feature which is an upscaling technique (improves frame rates and image quality) like Nvidia’s DLSS.

Apart from these tools, there may also be a possibility of a future Xbox supercharged with AI, since Microsoft teased it earlier this year, with Xbox president Sarah Bond claiming it would be “the largest technical leap you will have ever seen in a hardware generation,” according to the report.