Xbox has confirmed it will halt development of Gaming AI Copilot and wind down the feature on mobile, following an announcement by CEO Asha Sharma.

Sharma posted on X, stating, "Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers."

She further 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."

Gaming Copilot is an AI assistant that helps players overcome difficult levels and progress through games. Microsoft termed Gaming Copilot as "The guide you want, when you want it. Brainstorm strategies and get tips or insights with personalized coaching."

The feature also recommends games by analyzing a player's game library and suggesting titles accordingly

Apart from this, there are Other changes confirmed by Asha Sharma within the Xbox office, including the return of some Xbox veterans.

Other Changes in Xbox Confirmed By Asha Sharma

Sharma further tweeted, "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."

According to IGN, four former colleagues from Microsoft's CoreAI division are coming to Xbox. The four names include: Tim Allen, former CoreAI VP of design, who will join Xbox to lead experience design.

Also, Jonathan McKay, former CoreAI head of growth, will now become Xbox's head of growth, with former CoreAI general manager Evan Chaki joining to simplify development. Former CoreAI VP of product, Jared Palmer, also joins as VP of engineering.

Additionally, David Schloss, who was a former colleague of Sharma at Instacart, is leading the Xbox subscription and cloud business.

Also, Jason Ronald has been promoted to lead Project Helix development. Apart from additions, Kevin Gammill, a former 20-year Microsoft veteran, is leaving the field after working on the Xbox user experience.

These changes come as Microsoft's gaming division continues to post losses. As for the first quarter of 2026, Xbox hardware revenue has declined by 33%, and Microsoft's Gaming revenue has decreased by 7%. Further, Xbox content and services revenue has also decreased by 5%.

Whether these major decisions and shifts in power will make a difference in spiking the Gaming division's revenue remains to be seen.

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Written by

Dhruv Singh

Edited by

Siddharth Rawat