Xbox will automatically cut your best moments. Microsoft is testing Highlight Reels with AI.

Calendar 2/20/2026

Microsoft is testing a solution that could change the way players save and share their best moments. A feature called Highlight Reels aims to automatically analyze gameplay in real-time and create ready-made clips without pressing the recording button. Interestingly, the technology is not being tested on the classic Xbox console, but on the handheld ROG Xbox Ally X. This Asus device with an AMD chip is equipped with a dedicated NPU module for AI computing.

AI instead of a classic DVR

Highlight Reels does not work like a traditional recorder that records everything in the background. The system is supposed to analyze the image in real-time and decide for itself when something noteworthy happens. In practice, this means recognizing: impressive victories, key plot moments, spectacular actions in shooters, unusual or funny situations. The entire process is handled locally, without sending the image to the cloud. This is where the NPU plays a key role, relieving the CPU and GPU and minimizing the impact on the device's performance and battery. The feature is being tested in many games of different types, including Forza Horizon 5, Elden Ring, Fortnite, Overwatch 2, and Call of Duty. This is important because the algorithm must recognize "strong moments" in completely different gameplay contexts.

Why are tests conducted on a handheld device?

At first glance, this may seem strange. If the feature is intended for the next generation of Xbox, why is it being tested on an Asus device? For months, there have been reports that the next Xbox may be closer to a classic PC with Windows 11 than a traditional console. The ROG Xbox Ally X with the Xbox Full Screen Experience interface provides a convenient testing environment. It is a mobile device with Windows, AMD APU, and NPU, which allows for testing how AI behaves in real-world conditions. If the future Xbox is indeed a hybrid of a console and a computer, such tests make sense.

Element of a Larger AI Strategy

Highlight Reels is not an isolated project. Microsoft is developing a whole set of AI-based features: Postgame Recaps, which are automated session summaries, Gaming Copilot with real-time suggestions, Auto SR, a system-supported image upscaling powered by AI. In this context, automated cutting of the best moments appears to be a natural extension of the ecosystem. However, the question arises whether gamers actually need this. The DVR system in Windows can be unreliable, and the Xbox app on PC does not always work perfectly. The new feature could be a significant convenience for content creators, but its success depends on the precision of the algorithms.

Highlight Reels shows that Microsoft wants future consoles to be not only a gaming platform but also a content creation tool. Automatically editing the best actions without pressing the recording button sounds like a convenient solution, but it all depends on the quality of the AI's performance. If the algorithms can indeed accurately recognize the most interesting moments, the feature could become standard in next-gen devices.

source: Spider’s Web, Windows Central

Katarzyna Petru Avatar
Katarzyna Petru

Journalist, reviewer, and columnist for the "ChooseTV" portal