Microsoft is set to discontinue its AI-powered Copilot assistant for Xbox, as announced by Asha Sharma, who became the new CEO of Xbox in February. The decision comes just a year after the feature's introduction, highlighting challenges in Microsoft's AI integration strategy within gaming.
Initially launched at the Game Developers Conference in March 2025, Copilot was designed to assist players with gameplay tips, coaching, and session recaps. A beta version was available on mobile and PC platforms, with plans for a console release later this year now canceled. Sharma indicated that the company aims to refocus its AI initiatives towards addressing player needs, such as enhancing graphics and improving personalization, as outlined in her April 30 post on X.
As part of a larger restructuring of the Xbox leadership team, Sharma emphasized the need for the division to accelerate its operations and strengthen ties with the gaming community. She is bringing in four executives from her former team in CoreAI, including Jared Palmer, Tim Allen, and Jonathan McKay, to assist in this transformation.