Xbox Is Ending Copilot on Console as CEO Asha Sharma Says the Business Needs to Get “Back on Track”

Xbox is ending Copilot development on console and winding down the feature on mobile as CEO Asha Sharma says the business needs to get back on track.

Xbox has been going through a lot of change lately, and the latest change makes it clear that the company is not just tweaking things around the edges. Over the past few weeks, Microsoft’s gaming business has been under new pressure after recent earnings showed Xbox content and services revenue down 5% year over year, while overall gaming revenue also declined.

A new report released today also detailed a wider Xbox leadership overhaul, with CEO Asha Sharma bringing in leaders from Microsoft’s CoreAI group as part of a push to fix how Xbox builds, ships, and supports its platform.

Now, Sharma has announced another big change: Xbox is ending development of Copilot on console and winding down Copilot on mobile.

Xbox Is Stopping Copilot Console Development and Winding Down Mobile Support

The update comes directly from Asha Sharma, who posted a statement on X today explaining the change. According to Sharma, Xbox needs to move faster, spend more time listening to its community, and reduce friction for both players and developers.

Here is her full statement:

“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.”

In other words, Xbox is cutting back a feature that no longer fits the company’s current direction. Copilot was meant to become part of the Xbox experience, including on console, but that plan is now being stopped before it fully rolls out. Mobile support is also being phased out rather than expanded.

This does not mean Xbox is dropping AI completely. The bigger point is that Sharma appears to be trimming projects that do not help Xbox solve its most urgent problems right now.

This also connects directly to the recent CoreAI leadership changes. Sharma is bringing in new voices from Microsoft’s AI and engineering side, including Jared Palmer, Tim Allen, Jonathan McKay, and Evan Chaki.

What do you think about Xbox ending Copilot development on console? Let us know your thoughts in the comments below!