Xbox kills Copilot under new CEO Asha Sharma in major AI strategy reversal

Xbox is shutting down its Copilot AI initiative across both mobile and console platforms, according to new Xbox chief Asha Sharma, in a move that signals a sharp strategic pivot away from the previous AI direction. The announcement came as part of a broader reorganization of the Xbox platform team that also brought in senior executives from Microsoft's CoreAI division—where Sharma previously led operations before taking over Xbox. The dual announcement underscores how aggressively Sharma is reshaping the division in her own image just weeks into the role.

The decision to wind down Copilot on mobile and halt console development marks a notable reversal for a company that had positioned the AI assistant as a key part of its future player experience. Sharma framed the cuts as necessary to reduce friction for both players and developers, stating on X that Xbox needs to move faster and deepen its connection with the community. While the company did not disclose how many users were actively using Copilot or what prompted the specific timing of the decision, the swiftness of the rollback under new leadership suggests the initiative may have faced internal skepticism long before Sharma's arrival.

The reorganization places former CoreAI executives directly into Xbox's platform structure, consolidating Sharma's former team into her new domain. Analysts will be watching closely for what replaces Copilot in Xbox's roadmap, and whether the move signals a broader pullback from AI consumer features across Microsoft Gaming—or simply a recalibration under new leadership. The integration of CoreAI talent into Xbox also raises questions about how Microsoft's central AI resources will be deployed across its gaming division going forward.