In brief: Microsoft is still exploring ways to leverage NPUs for gaming. While AI-based image upscaling might be the most obvious implementation, the company is also attempting to turn Copilot into a gaming assistant, and Xbox Insiders can test features that aim to automatically record memorable moments.
Sources recently informed Windows Central that Xbox Insiders who own Asus ROG Xbox Ally handheld gaming PCs can test a feature that uses the system's embedded NPU to capture notable gaming moments. The functionality works without interrupting gameplay.
While the feature's inner workings remain unclear, it might leverage the Xbox app's screen capture capabilities alongside Copilot to automatically record moments that appear especially intense. The name "Highlight Reels" also suggests that Microsoft's AI could save players the trouble of editing the recordings.

It also remains unclear how Copilot will determine what is noteworthy. Microsoft plans to enable it for all users and on all games in the coming months, but Insiders are currently testing it on a limited selection that includes League of Legends, Dota 2, Call of Duty, Among Us, Fortnite, Rainbow Six Siege, Forza Horizon 5, Palworld, Rocket League, Elden Ring, Overwatch, Lies of P, and Battlefield 6.
If testing is successful, Highlight Reels would presumably become available on all PCs equipped with NPUs that meet Microsoft's Copilot+ standard. Currently, processors with NPUs that meet the 40 TOPS threshold include Qualcomm Snapdragon X, AMD Ryzen AI 300, and Intel Core Ultra 200V or later. Nvidia is also expected to unveil an Arm CPU in Copilot+-branded PCs in the first half of 2026.

The Highlight Reels feature sounds similar to another function Microsoft recently announced for Xbox Insiders on all PCs, which automatically assembles postgame recaps. When players unlock achievements or manually capture in-game moments, the Xbox app sometimes edits them into recaps that appear after users close the game. To customize the feature, head to Settings > App > Postgame recaps.
Microsoft also plans to bring Automatic Super Resolution to ROG Xbox Ally devices in early 2026. The feature, which uses NPUs to apply AI upscaling to PC games, is currently available on Qualcomm Copilot+ PCs. Unlike Nvidia DLSS, it upscales the final image without incorporating motion or temporal data, enabling it to theoretically support all games.
Microsoft's Copilot game assistant is currently in beta for all Xbox Game Bar users.