Xbox CEO Asha Sharma announced the termination of Copilot AI development on mobile and consoles, alongside significant leadership changes aimed at addressing declining revenue. Sharma, who became CEO in February after Phil Spencer's retirement, previously held executive roles at Meta and Instacart.

Phil Spencer is retiring from Microsoft after 38 years, including 12 years leading the Xbox brand. Asha Sharma, previously President of Microsoft’s CoreAI product, has been appointed as the new CEO of Microsoft Gaming.