Xbox CEO Asha Sharma Axes AI Copilot Feature, Shifts Focus to Community and Developer Needs

When Xbox’s new CEO, Asha Sharma, took over from former chief Phil Spencer, her appointment raised eyebrows. Sharma, previously president of Microsoft’s CoreAI product, joined a company aggressively embedding AI across its platforms. Yet her first major move suggests AI is not Xbox’s top priority—for now.

On X, Sharma announced the discontinuation of Xbox Copilot, an AI-powered feature designed to guide players through games step by step. "Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers," she wrote. "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, Xbox will retire Copilot on mobile and halt its development on console. The console version of Gaming Copilot, which would have streamlined gameplay by guiding players through challenges, sparked concerns about undermining game design and player agency. Questions also arose about data sources and intended users. Sunsetting a solution in search of a problem is an admittedly easy layup, but from this version of Microsoft, it’s far from a given.

A beta version of Gaming Copilot launched on PC and ROG Ally last year. Its future remains unclear as Sharma focuses on revitalizing Xbox.

Leadership Changes and Strategic Shifts

Sharma’s tenure has already seen significant changes. Shortly after taking charge, Microsoft distanced itself from the failed "This is an Xbox" marketing campaign, which contributed to the ousting of former executive Sarah Bond. Last month, Xbox announced a long-awaited price reduction for Game Pass, addressing affordability concerns.

Ongoing Challenges and Controversies

Despite these moves, challenges persist. The human rights group BDS has labeled Microsoft "perhaps the most complicit tech company in Israel’s illegal occupation," urging a boycott of Xbox. Additionally, Sharma’s leadership team includes several AI-focused executives, raising questions about future decisions. Sharma herself has also faced scrutiny for her controversial views on AI’s role in addressing declining fertility rates.