Microsoft gives up on Xbox Copilot AI

The Verge / 5/6/2026

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Key Points

  • Microsoft’s new Xbox CEO Asha Sharma announced that Xbox Copilot AI is being wound down on mobile and that development will stop for the console version.
  • The decision follows Sharma’s earlier reorganization of the Xbox platform team, which included executives from Microsoft’s CoreAI team.
  • Xbox said it needs to move faster, strengthen community connections, and reduce friction for both players and developers, framing the change as part of a broader platform shift.
  • Copilot’s scaling back suggests Microsoft is deprioritizing this specific AI feature set within Xbox while reallocating leadership and focus across the platform org.
Promo image showing Xbox Copilot AI on mobile screens around a TV

Xbox is "winding down Copilot on mobile" and "will stop development of Copilot on console," new Xbox CEO Asha Sharma announced on Tuesday. The move follows Sharma's reorganization of the Xbox platform team earlier on Tuesday, which added executives from Microsoft's CoreAI team - where Sharma worked before taking over Xbox - to the Xbox side of the company.

Sharma, on X:

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 th …

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