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Microsoft Ends Xbox Copilot Consumer Development, Restructures Platform Team

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Microsoft Axes Xbox Copilot Plans, Restructures Platform Team Under New CEO

Microsoft is winding down consumer-facing Copilot features for Xbox, including removing the AI assistant from the Xbox mobile app and halting all development of a Copilot feature for Xbox consoles.

Decision on Copilot

Xbox CEO Asha Sharma informed staff that the company will "begin to retire features that don't align with where we're headed," according to an internal memo quoted by The Verge. The Copilot integration in the Xbox mobile app, which provided gaming advice and assistance, will be wound down. Development of a Copilot feature for Xbox Series X and S consoles has been stopped.

The Copilot for Gaming initiative was publicly announced in March 2025, with plans for a console release before the end of 2026. A beta version launched in May 2025 on PC, mobile, and Asus ROG Ally devices. The feature was intended to assist players via voice commands, including tips, plot reminders, achievements, and game recommendations. Those console plans are now abandoned.

Sharma stated the company needs to "move faster, deepen our connection with the community, and address friction for both players and developers."

She added that current internal processes make it "too hard to ship impact quickly" and that the organization spends too much time focused inward.

Leadership and Team Restructuring

The Copilot announcement coincided with a reorganization of the Xbox platform team that added several executives from Microsoft's CoreAI unit:

  • Jared Palmer (former CoreAI VP of product) joins Xbox to focus on engineering and infrastructure.
  • Tim Allen (former CoreAI VP of design and research) will lead Xbox design.
  • Evan Chaki (former CoreAI general manager) will lead a team of engineers focused on simplifying development.
  • Jonathan McKay has been appointed to lead growth.
  • An unnamed executive has been appointed general manager of transformation.

Additional personnel changes include:

  • David Schloss (from Instacart) becomes head of Xbox subscriptions and cloud.
  • Jason Ronald will be accountable for Project Helix and the Xbox platform.
  • Jason Beaumont will lead product and services and serve as interim head of engineering.
  • Fatima Kardar will remain corporate VP of gaming AI and head a new personalization organization.
  • Jennifer Creegan will lead Xbox's media business.
  • Kevin Gammill is departing as CVP of gaming ecosystem organization.
  • Roanne Sones is taking a leave of absence.

Context and Strategic Direction

Sharma joined Xbox in February 2025 following Phil Spencer's departure as Microsoft Gaming CEO. Under her leadership, Xbox has made several changes, including reducing a recent price increase for Xbox Game Pass and ending the "This is an Xbox" marketing campaign.

The removal of Copilot from Xbox products follows a similar move on Windows, where Microsoft began removing Copilot from select applications after criticism. The shift suggests AI features may not be prominent in consumer-facing Xbox products but could be integrated into internal tools for developers.

Xbox has stated there is no pressure from Microsoft to use AI. The company's stance on AI remains unchanged.

Xbox's current strategic priorities include:

  • Increasing daily active players
  • Improving hardware, content, experiences, and services
  • Expanding into China and emerging markets
  • Strengthening Game Pass with a sustainable financial model

In its most recent financial results, Xbox reported a 33% decrease in hardware revenue and a 5% decline in content and services revenue for Q3, while also recording record monthly active users and streaming hours.