Xbox has announced the discontinuation of its Copilot AI assistant for consoles and a reduction of its mobile functionality, as new CEO Asha Sharma reshapes the company's leadership team with hires from Microsoft's CoreAI division. The move comes amid a broader restructuring aimed at accelerating innovation and improving relations with players and developers.
Copilot Retirement and New Leadership
In a post on X, Sharma stated that Xbox needs to 'move faster' and 'address friction' within the gaming ecosystem. As part of this shift, the company will wind down Copilot on mobile and halt development of the console version, which was previously slated for release later this year. This decision reverses Microsoft's earlier plans to integrate AI assistance into games like Minecraft and Forza Horizon 5.
Simultaneously, Sharma has appointed several former colleagues from Microsoft's CoreAI division to senior Xbox roles. Jared Palmer joins as vice president of engineering and technical advisor to the CEO. Tim Allen, formerly CoreAI's VP of design and GitHub's senior VP of design and research, will lead Xbox design. Jonathan McKay takes charge of growth, data platform, and analytics, while Evan Chaki heads a new engineering team focused on reducing repetitive work and simplifying development.
Veteran Departures and Promotions
The shake-up includes the departure of long-time Xbox executives. Roanne Sones, corporate vice president of Xbox devices and ecosystem, will take a leave of absence after summer but remain as an advisor. Kevin Gammill, corporate vice president of Xbox user experience, is stepping down after nearly 20 years. Meanwhile, Jason Ronald, vice president of next gen, has been promoted to a new role closely tied to Project Helix, Microsoft's next-generation console.
AI Strategy Under Scrutiny
While the removal of Copilot may appear as a retreat from AI, Sharma has emphasized a refocusing rather than abandonment of the technology. Critics note that Microsoft has previously replaced Copilot in Windows apps with less conspicuous AI tools, suggesting a strategic rebranding. The true test will be how AI is leveraged in Project Helix, details of which remain under wraps.
Industry observers view these changes as a necessary shake-up for Xbox, which has struggled to compete with PlayStation and faced criticism over its Xbox Series X/S performance. The infusion of CoreAI talent signals a potential shift toward AI-driven development tools and player experiences, though the full impact may not be felt for some time.
