Xbox is ditching Microsoft's Copilot AI
Source: Engadget
Background
Microsoft announced plans to start stripping Copilot out of select Windows apps in March, following criticism of the company’s handling of its operating system. The AI assistant is also being removed from the Xbox brand’s mobile app and Xbox consoles, as announced by Xbox CEO Asha Sharma.
Under previous Xbox leadership, Copilot was introduced as an in‑game assistant that could recognize what you were playing and offer contextual advice based on the screen. A beta version was launched by adding Copilot to the Xbox mobile app in May 2025, and a March GDC presentation indicated plans to bring Copilot to Xbox consoles later that year. Those plans “don’t align” with the new direction for Xbox, Sharma said in a post announcing new hires.
Sharma’s Announcement
“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 Sharma, May 5 2026 [tweet]
Implications for Xbox
Before leading Xbox, Sharma was President of Microsoft’s CoreAI division. Several of her new hires are coming from that team, as reported by CNBC:
- Jared Palmer – Vice President of Product, CoreAI, now joining Xbox to work on engineering and infrastructure.
- Tim Allen – Vice President of Design and Research, CoreAI, now leading design at Xbox.
- Evan Chaki – General Manager, CoreAI, overseeing a team focused on simplifying development.
These hires and the decision to retire Copilot suggest that AI may play a reduced role in Xbox’s public‑facing products, though it could still be integrated into internal tools and developer workflows. The move is part of a broader effort to revitalize Xbox, similar to recent changes such as the adjustment of Xbox Game Pass pricing.