Microsoft plans to remove its Copilot AI assistant from select Windows applications starting in March due to criticisms over its operating system management. Xbox CEO Asha Sharma also announced the discontinuation of Copilot from the gaming brand’s mobile app and Xbox consoles.
Copilot was initially introduced as an in-game assistant that provided contextual advice during gameplay. A beta version was incorporated into the Xbox mobile app in May 2025, with intentions to extend it to Xbox consoles later this year. Sharma stated that proceeding with these plans “doesn’t align” with Xbox’s future direction.
Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers.
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…— Asha (@asha_shar) May 5, 2026
Sharma emphasized the need for Xbox to innovate more rapidly, strengthen community engagement, and alleviate friction for players and developers. “Today, we promoted leaders who helped build Xbox, while also bringing in new voices to help push us forward,” she said. The move signals a shift towards retiring features that do not fit with the brand’s strategic focus.
Sharma’s prior experience as President of Microsoft’s CoreAI division is reflected in her recent hiring strategy. New team members include Jared Palmer, Vice President of Engineering and Infrastructure; Tim Allen, Head of Design; and Evan Chaki, who will oversee a team simplifying development for Xbox.
While the retirement of Copilot indicates that AI may not prominently feature in Xbox’s consumer products, it may still play a role in internal operations and developer tools. Sharma’s decisions, including adjustments to Xbox Game Pass pricing, underline her decisive approach to enhancing the Xbox brand.
