Xbox CEO Asha Sharma ends Copilot development for console and mobile

Xbox CEO Asha Sharma has confirmed plans to wind down Copilot AI development while introducing leadership changes aimed at addressing recent business challenges.

The announcement was made in a memo to staff on Tuesday, outlining steps to improve performance following a period of declining revenue.

Sharma, who assumed the role in February after Phil Spencer’s retirement, stated that the company needs to accelerate its processes and strengthen engagement with its audience.

“Right now, it is too hard to ship impact quickly. We spend too much time inward instead of with the community, and we lack the depth we need in some of the fundamentals,” she wrote.

As part of the strategy shift, Copilot features will be phased out. Mobile support will be wound down, while development for console integration has been halted.

Sharma explained the decision publicly, stating, “Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers.” She added, “We will begin winding down Copilot on mobile and will stop development of Copilot on console.”

The restructuring includes the addition of several executives from Microsoft’s CoreAI division. Jared Palmer will take on responsibilities spanning product and engineering, while Tim Allen will lead design.

Jonathan McKay has been appointed head of growth, Evan Chaki will oversee engineering teams, and David Schloss will manage subscription and cloud services.

Two long-serving Microsoft executives, Kevin Gammill and Roanne Sones, are stepping back from their roles, with Sones transitioning to an advisory position after a leave of absence.

The leadership overhaul follows earlier changes under Sharma, including adjustments to Game Pass pricing and plans for new partnerships.