Xbox CEO ends development of the AI Copilot for the console and gradually stops mobile services

Xbox CEO Asha Sharma announced on May 6 on the X platform that Xbox will stop developing AI Copilot on the console side and will gradually shut down Copilot services on the mobile side. According to IGN, Sharma sent an internal memo to Xbox employees the same day, explaining that the Xbox team is undergoing a major transformation and appointing new leadership to accelerate execution.

Official Statement and Decision to Halt Development

Based on Sharma’s public statement on X, she said: “Xbox needs to move faster, deepen connections with the community, and address the friction players and developers are encountering. As part of this transformation, we will begin phasing out features that don’t align with our future direction. We will gradually stop the operation of mobile Copilot, and stop the development of console-side Copilot.”

According to IGN, in an internal memo to Xbox employees, Sharma said: “At the moment, we find it difficult to generate impact quickly. We’ve spent too much time internally rather than engaging with the community; and in some key areas, we lack the capabilities we need.”

Background of Gaming Copilot and Reasons for the Shutdown

According to Kotaku, Xbox launched a test version of Gaming Copilot on mobile devices in 2025 and planned to roll out the feature to all console users. A preview report by Kotaku reporter Ethan Gach showed that 19% of early users only engaged in general conversations with Copilot, not for gaming assistance. Gach also pointed out that the game guides and tips Copilot shares with players appear to be works that creators “copied from the internet without authorization.”

Xbox Transformation Plan

According to IGN, in her internal memo, Sharma said the Xbox team needs to keep evolving to “build the capabilities required” to deliver on its commitments. Sharma also said Xbox is appointing new leadership, many of whom are former colleagues of hers from the CoreAI team. According to IGN, Xbox’s next-generation console is currently codenamed Project Helix.

FAQ

Why is Xbox stopping the development of Copilot?

Based on Asha Sharma’s public statement on X, the decision to stop development is part of Xbox’s strategy to “sunset features that don’t align with the company’s future direction,” aimed at accelerating Xbox’s progress and deepening connections with the player community.

How was Gaming Copilot used before it was discontinued?

According to Kotaku reporter Ethan Gach’s report, 19% of early Copilot users only had general conversations with Copilot; Gach also noted that the game guides Copilot shares appear to be creators “copied from the internet without authorization.”

What are the main measures included in Xbox’s current transformation plan?

According to IGN, Sharma said in her internal memo that Xbox is undergoing a major transformation. The measures include stopping Copilot development, appointing new leadership, and focusing on developing future-facing new features; Xbox’s next-generation console is codenamed Project Helix.