Xbox Stops Development of Copilot for Consoles

A Quick Reversal

Xbox CEO Asha Sharma has officially announced that development of Copilot for Xbox consoles has stopped. In March 2026, Microsoft announced the AI assistant would be coming to Xbox Series X|S later in the year. Just two months later, that plan is off the table. The mobile Copilot service will also be wound down.

The Reasoning

In a social media post, Sharma framed the decision as part of a strategic refocus. Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers, she wrote. Copilot on console did not align with where Xbox is headed.

Leadership Overhaul

Alongside the Copilot announcement, Xbox revealed new leadership. Joining the team are Jared Palmer (VP of Engineering), Tim Allen (design lead), Jonathan McKay (growth, data platform, and analytics), and Evan Chaki (engineering lead), all from Microsoft's CoreAI team. Jason Roland, VP of Next Gen, was also promoted to a new title.