Xbox CEO Announces End of AI Copilot Development
Xbox CEO Asha Sharma has confirmed the end of development for AI Copilot on the Xbox console, and the winding down of Copilot for mobile, as part of a shift to ‘retire features that don’t align with where [the company is] headed’. This decision marks a significant change in direction for the gaming giant, reflecting a broader strategy to focus on what matters most to its users.
Sharma’s move comes after a period of public scrutiny. She was previously head of CoreAI product at Microsoft, with a focus on user acquisition. Following her appointment, there was much scepticism around how she would shape the future direction of Xbox. However, her commitment to an anti ‘AI slop’ approach has somewhat addressed concerns.
As one of a string of recent moves, Sharma’s decisions to wind down Copilot on console and mobile are being well-received as another potentially positive decision about the future of Xbox.
What’s Next for Xbox?
In a recent post on X, Sharma stated:
‘Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers.’
She added:
‘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.’
The AI Copilot feature was launched in 2025 as a beta for Gaming Copilot on mobile, with plans for this feature to be available to all users on console. Based on early previews, it introduced an AI gaming ‘sidekick’ for players, with the option to talk to the sidekick and ask it for gameplay tips to receive ‘immediate and helpful responses’.
A preview shared by Kotaku reporter Ethan Gach highlighted that Copilot for mobile and console was being mostly used as a companion, with 19% of early users just chatting with it. Gach also noted a major concern with the feature, that guides and gameplay tips shared with players were seemingly ‘lifted without credit from the internet’.
Concerns Around AI Copilot
To gather such tips, Copilot naturally would have to mine the internet, with the on-board feature essentially reading and regurgitating the work of journalists and content creators without the resulting views and traffic that would otherwise be given by a Google search (and that creators rely on for continued support). These concerns, paired with loud frustration from anti-AI players, may well have inspired the decision to end development of Copilot for console and mobile.
The reality is that most players simply use a console for gaming. For most, the idea of having an on-board AI companion is undesirable and unhelpful. The responses to Sharma’s Copilot announcement also support that. Many Xbox players have called the move ‘great’ and have posted or liked memes celebrating the death of this Copilot feature.
Changes Underway at Xbox
As Sharma announced, there are significant changes currently underway at Xbox, with the end of development on Copilot for mobile and console being just the start. Sharma has also indicated that new leaders are being appointed to the Xbox team – many of them being Sharma’s trusted former coworkers from the CoreAI team.
In an internal memo sent to Xbox staff, and published by IGN, Sharma reportedly stated the Xbox team needed to be able to evolve to ‘build the capacity [it] needs’ to deliver on its promises.
‘Right now, it is too hard to ship impact quickly,’ Sharma reportedly wrote. ‘We spend too much time inward instead of with the community; and we lack the capability we need in some key areas.’
With new appointments, and a prioritisation on new, future-aligned features – excluding jamming Copilot into all gaming-adjacent platforms – Sharma hopes to win back Xbox players in time for the launch of the next Xbox console, currently codenamed Project Helix.
Looking Ahead
As the gaming landscape continues to evolve, Xbox is taking bold steps to redefine its identity. By focusing on what truly resonates with its community, the company aims to build a stronger connection with players and developers alike. With these changes, the future of Xbox looks promising, and fans are eagerly anticipating what’s next.
