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Xbox CEO ends Copilot AI development and overhauls leadership

Xbox CEO ends Copilot AI development & overhauls leadership - Dexerto

dexerto.com

May 5, 2026

2 min read

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Summary

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.

Key Takeaways

Xbox CEO Asha Sharma announced the winding down of Copilot on mobile and the halt of console development as part of a leadership overhaul.
Four executives from CoreAI are joining Xbox to enhance product, engineering, and growth strategies.
Sharma emphasized the need for Xbox to move faster, deepen community connections, and eliminate features that do not align with the company's current direction.
Two veteran Microsoft executives, Kevin Gammill and Roanne Sones, are departing from Xbox amidst the leadership changes.

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Coverage & discussions

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Xbox CEO ends Copilot AI development and overhauls leadership ↗

Community discussions

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Analysis ready

Community Sentiment

Negative

Positives

The potential for a new leadership team with a GenAI background could bring innovative ideas to Xbox, possibly revitalizing the gaming experience.
There is optimism that the new CEO can turn things around for Xbox, indicating a belief in the possibility of improvement.

Concerns

Gamers are increasingly hostile to GenAI, suggesting a disconnect between AI initiatives and gamer preferences, which could hinder adoption.
The discontinuation of Copilot AI development raises questions about Xbox's direction and commitment to enhancing user experience with AI.
Many users feel that Xbox has neglected its user base and failed to deliver compelling games, leading to a perception of decline in relevance.
Critics argue that the focus on AI features detracts from the core need for quality games, indicating a misalignment with gamer priorities.