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Microsoft outlined its strategy to gradually remove Copilot from specific Windows applications in March, following intense backlash over its handling of the operating system. It now appears that Windows won’t be the sole platform seeing this reduction: Xbox CEO Asha Sharma revealed that the AI companion will also be pulled from the gaming division’s mobile application and Xbox hardware.
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Under earlier Xbox management, Copilot was unveiled as a contextual in-game helper designed to monitor your current game and provide tailored suggestions based on what appears on your display. Microsoft introduced a beta iteration of this feature by integrating Copilot into the Xbox mobile app in May 2025, with intentions to extend it to Xbox consoles later that year, according to a GDC presentation from March. However, Sharma noted in a recent announcement regarding new Xbox team appointments that these plans “do not align” with the company’s future direction.
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Prior to taking the helm at Xbox, Sharma served as President of Microsoft’s CoreAI division, and several of her new recruits are joining from her previous team, CNBC reports. This includes Jared Palmer, CoreAI’s vice president of product, who’s joining Xbox to work on engineering and infrastructure; Tim Allen, CoreAI’s vice president of design and research, who’ll now lead design at Xbox; and Evan Chaki, a general manager at CoreAI who’ll be in charge of a team of engineers tasked with simplifying development.
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Those hires and Sharma’s decision to retire Copilot suggests that AI might not be a big part of the public-facing products Xbox offers, but it could be integrated into how the division is run and the tools it offers to developers. Whether that proves to be positive remains to be seen, but like the recent change to Xbox Game Pass’ pricing, it’s at least decisive action in Sharma’s quest to fix Xbox.
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