Xbox CEO ends Copilot AI development and overhauls leadership
Source: Hacker News
Announcement
Asha Sharma confirmed that Xbox will wind down Copilot on mobile and halt console development entirely. In a memo to staff on Tuesday, the new CEO outlined sweeping leadership changes aimed at reversing a run of declining revenue.
Sharma took over as Xbox CEO in February following Phil Spencer’s retirement. She joined Microsoft in 2024 after executive roles at Meta and Instacart, and had been serving as president of product in the CoreAI engineering group before moving to Xbox.
In the memo, reported by CNBC, Sharma wrote that Xbox needs to move faster and get closer to its community:
“Right now, it is too hard to ship impact quickly. We spend too much time inward instead of with the community, and we lack the depth we need in some of the fundamentals.”
Through X, she described the Copilot cuts as features that no longer align with the company’s direction. She added:
“Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers. 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. 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.”
— Asha (@asha_shar) May 5 2026
Leadership changes
Four executives from CoreAI are joining Xbox as part of the shake‑up:
| Executive | New role at Xbox |
|---|---|
| Jared Palmer – former CoreAI vice president and GitHub senior vice president | Member of Technical Staff covering product, engineering, developer tools, and infrastructure |
| Tim Allen – led design and research at CoreAI and GitHub | Head of Xbox Design |
| Jonathan McKay – previously head of growth for ChatGPT at OpenAI | Head of Xbox Growth |
| Evan Chaki – CoreAI general manager | Leader of a forward‑deployed engineering team |
| David Schloss – senior director of product and growth at Instacart | Lead for Xbox’s subscription and cloud business |
Departures
Two veteran Microsoft executives are leaving Xbox:
- Kevin Gammill, corporate vice president for Xbox user experience, game development, and publishing platforms.
- Roanne Sones, corporate vice president for Xbox devices and ecosystem, who will take a leave of absence after this summer before moving into an advisory role. Both have spent 24 years at Microsoft.
Recent initiatives
Sharma’s overhaul follows earlier moves, including the reduction of the Game Pass Ultimate price after a leaked internal memo highlighted cost concerns. She also hinted at a new partnership between Xbox and Discord.