Microsoft halts Xbox Copilot AI development following leadership restructuring
Development of Copilot on consoles has ceased while mobile functionality is being wound down as the Xbox platform team integrates CoreAI executives.
Microsoft has announced it will cease all development of its Copilot artificial intelligence features on Xbox consoles and is actively winding down the service on mobile devices. The decision was confirmed by Asha Sharma, the new CEO of Microsoft Gaming, and marks a significant shift away from the gaming-focused AI initiatives that had been heavily publicised in the preceding year.
This strategic pivot follows a recent reorganisation of the Xbox platform team, which integrated senior executives from Microsoft's CoreAI division. Sharma, who previously led the CoreAI unit before assuming her new role in February, stated that the company would begin to retire features that no longer align with its future direction. The restructuring aims to accelerate the business and address friction for both players and developers.
Specifically, plans to launch a dedicated "Copilot for Gaming" feature on current-generation consoles, which were scheduled for release earlier this year, will not proceed. While existing functionality on consoles may remain in a non-updated state rather than being immediately patched out, the cessation of development effectively nullifies the feature's long-term utility. Similarly, the winding down of mobile Copilot implies a transition period rather than an instantaneous deletion of the service.
Sharma took over from Phil Spencer in February and has already implemented several other significant changes to the division's strategy. These include scrapping the "Microsoft Gaming" brand name and reducing the price of Xbox Game Pass. The integration of CoreAI leadership into the Xbox platform team underscores a broader effort to redefine the division's approach to artificial intelligence within the gaming sector.
The move reflects a recalibration of priorities under Sharma's leadership, moving away from the specific AI roadmap promoted under the previous administration. As the company seeks to get the business back on track, the focus is shifting toward deeper community connections and faster execution, with features that do not fit this new vision being retired.
