Microsoft will remove its Copilot AI assistant from select Windows applications starting in March, after facing significant criticism regarding its operating system. Xbox CEO Asha Sharma announced that Copilot will also be discontinued on the Xbox mobile app and Xbox consoles.
Copilot was initially introduced as an in-game assistant that provided contextual advice based on users’ gameplay. The beta version was launched in the Xbox mobile app in May 2025, with plans to extend it to Xbox consoles within the same year. However, Sharma indicated that these plans do not align with the future direction of the Xbox brand.
“Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers,” Sharma stated. She emphasized that the company will begin to phase out features that do not support its evolving objectives.
Alongside the news of Copilot’s retirement, Sharma announced new leadership within Xbox, with many hires coming from her previous role at Microsoft’s CoreAI division. Notable appointments include Jared Palmer as vice president of product, Tim Allen as vice president of design and research, and Evan Chaki as general manager overseeing engineering teams.
These changes, including the retirement of Copilot and a recent adjustment in Xbox Game Pass pricing, reflect Sharma’s strategic efforts to address challenges within the Xbox division. While AI may not be prominent in Xbox’s public offerings, it could be utilized internally to enhance operations and development tools.
