Xbox CEO cancels console AI chatbot Copilot on consoles

Key Points:

• Microsoft is halting development of its AI chatbot Copilot for Xbox consoles as part of a strategic shift under newly appointed Xbox CEO Asha Sharma, who aims to retire features that don't align with the brand's future direction.
• The decision follows internal leadership changes, including the transfer of four CoreAI team members to Xbox, signaling a broader restructuring to accelerate growth and deepen community engagement.
• Gaming Copilot, launched in beta last year as an AI gaming assistant for Xbox mobile app and Windows 11 devices, was intended to provide in-game tips and recommendations but had not yet been released on consoles.
• Despite plans announced earlier this year to expand Copilot to current-generation Xbox consoles, Microsoft will now wind down the feature on mobile and cease console development, marking a sudden reversal in strategy.
• CEO Sharma emphasized the need to reduce friction for players and developers while balancing experienced leadership with new voices to realign Xbox's business trajectory.