Microsoft Retires Xbox Copilot AI Assistant on Mobile and Consoles, Confirms Xbox Leadership Changes

Xbox is ditching Copilot, Microsoft's much maligned AI-powered gaming assistant. The company announced that it would wind down Gaming Copilot on mobile and stop the development of Copilot on Xbox consoles. Xbox chief Asha Sharma, who has brought in major changes to the platform since taking over as CEO in February, said that the Copilot feature on Xbox did not align with where the company was headed.

Sharma announced the move as part of wider changes at Xbox, including a leadership shuffle that brings several staffers from Microsoft's CoreAI team to the gaming platform.

“As part of this shift, you'll see us begin to retire features that don't align with where we're headed. We will begin winding down Copilot on mobile and will stop development of Copilot on console,” the Xbox boss said Wednesday.

Copilot on Xbox arrived as part of Microsoft's push to put AI into its products. Copilot for gaming, announced last year, was billed as an AI assistant for gamers that provides tutorials, guides and other in-game assistance. Gaming Copilot was rolled out on Windows, built inside the Xbox Game Bar, and on the Xbox mobile app last year.

Earlier this year at Game Developers Conference (GDC), Microsoft announced that gaming Copilot was coming to Xbox Series S/X consoles in 2026. Sharma's announcement puts a stop to that. The move also falls in line with the new Xbox chief's promise to stay away from “AI slop”. When Sharma, a former AI executive at Microsoft, took over as Xbox chief, she sought to dispel fears around aggressive implementation of generative AI at Xbox.

Leadership Shuffle at Xbox

Alongside the Copilot update, Sharma also announced leadership changes at Xbox on Wednesday. The shake up brings several new faces at the platform, especially from Microsoft's Core AI team.

“Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers,” Sharma said. “Today, we promoted leaders who helped build Xbox, while also bringing in new voices to help push us forward. This balance is important as we get the business back on track.”

Most notably, Jared Palmer, former VP at Microsoft's CoreAI team, is joining Xbox as VP, engineering & technical advisor to CEO. Palmer said his focus will be on “building world-class tools, services, and experiences for developers and players across the Xbox ecosystem.”

Sharma has been praised by the Xbox community for making rapid and positive changes at the platform since she came on as CEO in February. The Xbox boss has focussed on making Xbox Game Pass more affordable and flexible for players and led a platform overhaul that saw Microsoft Gaming rebrand to Xbox with a new logo.

Sharma's list of accomplishments in two months of being Xbox CEO includes:

• Shutting down the infamous ‘This is an Xbox' marketing campaign
• Unveiling plans for Project Helix, the next-gen Xbox console
• Slashing the price of Xbox Game Pass Ultimate and PC Game Pass
• Removing Call of Duty from Game Pass
• Announcing an upcoming Discord and Game Pass partnership
• Changing Microsoft Gaming to Xbox
• Retiring Xbox Copilot

Additionally, Sharma and her team are also reevaluating Xbox's approach to exclusivity. Stopping multiplatform launches of its first-party titles and going back to Xbox exclusives would mark a major shift in strategy at the company under the new leadership. Sharma will likely share more platform updates at Xbox Games Showcase in June.