Xbox CEO Admits Microsoft’s AI ‘Doesn’t Align’ With Xbox — Removes Copilot From Console

Microsoft is preparing to scale back its Copilot AI integration across Xbox platforms, according to comments made by Xbox’s new CEO, Asha Sharma.

The announcement came shortly after Microsoft revealed a new leadership cabinet for Xbox.

As part of that strategy, the company will begin removing features that no longer align with its direction.

Sharma confirmed that Xbox will start winding down Copilot on mobile and will stop development of Copilot on console.

Microsoft had previously introduced its AI assistant into the gaming ecosystem through Gaming Copilot features in the Xbox mobile app and Xbox PC app.

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 said Xbox recently promoted leaders who helped build the platform while also bringing in new executives to support future changes.

According to her statement, the company views this balance between existing leadership and new hires as important for getting the business back on track.

The leadership changes had initially raised concerns among some users because several new appointments came from Microsoft’s CoreAI division.

The decision to reduce AI-related features on Xbox has reportedly received a positive reaction from many users online.

The move also appears to address concerns about a larger push toward generative AI features within the Xbox ecosystem.

Sharma has been in the role for around two months. While the changes have not yet affected Xbox revenue, the recent announcements have contributed to a shift in the platform’s public image and direction.

The company has already introduced several changes under Sharma’s leadership as it works to reshape the Xbox brand.