Microsoft is discontinuing its Xbox Copilot AI service on both mobile and console platforms, Xbox CEO Asha Sharma announced on Tuesday, June 10, 2025.
In a statement, Sharma confirmed that Xbox will "wind down Copilot on mobile" and "will stop development of Copilot on console." The decision follows a reorganization of the Xbox platform team earlier the same day, which included the addition of executives from Microsoft's CoreAI team—where Sharma previously worked before taking over Xbox leadership.
Leadership Changes and Strategic Shift
Sharma explained the rationale behind the move in a post on X (formerly Twitter):
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 there.
The reorganization aims to streamline Xbox's operations and accelerate innovation by integrating fresh perspectives from Microsoft's CoreAI team. Sharma emphasized the need for faster progress and stronger community ties to improve the experience for players and developers alike.
This marks a significant shift in Microsoft's approach to AI integration within its gaming ecosystem, signaling a refocus on core gaming priorities.