Microsoft Discontinues Xbox Copilot AI Initiative

Xbox is scaling back its Copilot feature on mobile and halting its development for consoles, as announced by the new Xbox CEO, Asha Sharma. This decision comes after Sharma’s recent restructuring of the Xbox platform team, which now includes executives from Microsoft’s CoreAI team, where she previously worked.

Sharma shared her vision on X, stating that Xbox needs to accelerate its pace, strengthen community ties, and reduce friction for both players and developers. She emphasized the importance of promoting leaders who have contributed to Xbox’s growth while also integrating fresh perspectives to drive the company forward. As part of this strategic shift, the team will start phasing out features that no longer align with their future direction, including the Copilot feature.

Since taking over from Phil Spencer in February, Sharma has already implemented significant changes, such as discontinuing the Microsoft Gaming brand and lowering Xbox Game Pass prices. Although Microsoft previously highlighted the potential of Copilot for Gaming and announced plans for its release on current-generation consoles this year, those plans are now off the table.