Xbox CEO cancels console AI chatbot Copilot on consoles

Polygon RSS Feed✍ Giovanni Colantonio📅 May 5, 2026⏱ 3 min read(4 months ago)

Overview & Key Takeaways

Asha Sharma confirms that Xbox is ending development for Copilot on Xbox as the brand continues to restructure ahead of Project Helix.

Microsoft is halting the development of its AI chatbot Copilot for Xbox consoles, according to recently appointed CEO Asha Sharma. The move comes as part of a continued business shift for Xbox under Sharma's leadership, which looks to "retire features that don't align with where we're headed."

The announcement came on a day of shakeups for the Xbox brand. Earlier in the day, IGN reported on an internal leadership shift that moves four members of Microsoft's CoreAI team to Xbox. A few hours later, Sharma shared another update on her X account, announcing that Microsoft is halting its plans to integrate Copilot into Xbox.

"Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers," Sharma said. "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 back on track. As part of this shift, you’ll see us begin to retire features that don’t align with where we’re headed. We will begin winding down Copilot on mobile and will stop development of Copilot on console."

Rolled out into beta last year, Gaming Copilot was set to bring AI integration to Xbox consoles and the Xbox mobile app. It was described as a gaming "sidekick" that could essentially act as an on-demand guide system. In theory, players could use it to get tips on how to beat a boss in a game, get game recommendations based on their play history, and more. While Gaming Copilot was in beta for the Xbox gaming app, Windows 11 devices, and the ROG Xbox Ally, it had yet to roll out to consoles.

A screenshot of the Xbox website page for Gaming Copilot. Image: Microsoft via Polygon

It's a sudden shift for Xbox considering that the company still had plans to roll the tech out as recently as March. While speaking at a panel at this year's Game Developers Conference, product manager Sonali Yandav said, "I'm excited to announce that later this year, we will bring Gaming Copilot to the current-generation consoles, and we will continue to bring it to more services that players are playing," according to a report from GamesRadar.

The shift away from Gaming Copilot is just one of many changes to the Xbox business enacted under Sharma, who took over as CEO after Phil Spencer stepped down from the position in February. Since then, Sharma has spearheaded a rebrand, announced Xbox Project Helix, confirmed that the company is reevaluating exclusivity, and raised internal concerns over the price of Xbox Game Pass, slashing the price of Game Pass Ultimate just weeks later.

Microsoft Gaming is dead, long live Xbox?

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