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I reported in November that Microsoft was about to start a bigger effort to bring AI features to Xbox, and today, the company is unveiling what it’s calling a breakthrough in AI for gaming. Microsoft’s new Muse AI model could help Xbox developers create parts of games in the future, and the company says it’s even exploring the potential of using it to preserve classic games and optimize them for modern hardware. Microsoft Research has created Muse, a first-of-its-kind generative AI model that can generate a game environment based on visuals or players’ controller actions. It understands a 3D game world and game physics and can react to how players interact with a game. “This allows the model to create consistent and diverse gameplay rendered by AI, demonstrating a major step toward generative AI models that can empower game creators,” explains Fatima Kardar, corporate vice president of gaming AI at Microsoft. The Muse model was trained on a large amount of human gameplay data from the Xbox game Bleeding Edge thanks to a collaboration between Microsoft Research and Xbox studio Ninja Theory — both of which are based in Cambridge in the UK.