Xbox Kills Gaming Copilot, Reshuffles Leadership Team

Xbox is pulling the plug on Gaming Copilot for consoles. CEO Asha Sharma announced the decision on May 6, 2026, alongside a broader leadership reshuffle, saying the company needs to reduce the friction between gamers and developers. The move comes just two months after Xbox announced Copilot would be coming to current-gen consoles later this year. 

Changes in Xbox Leadership

Gaming Copilot launched in beta on PC, mobile, and the ROG Ally in 2025, with console support being confirmed in March 2026. Now the console version is dead, the mobile version is being wound down, and Sharma has framed the cuts as part of a deliberate strategic shift. Sharma has stated that the Xbox team will retire features that don’t align with the company’s current vision. 

On the personnel side, Xbox is bringing in four executives from CoreAI, the Microsoft division Sharma previously led. The new hires are Jared Palmer as vice president (VP) of Xbox engineering, Tim Allen as corporate vice president (CVP) of Xbox design, Jonathan McKay as Xbox head of growth, and Evan Chaki as general manager of transformation. David Schloss, formerly of Instacart, joins as head of Xbox subscriptions and cloud.

Several existing leaders are also moving into new roles. Jason Ronald will focus on Project Helix and the Xbox platform. Fatima Kardar retains her gaming AI responsibilities while also heading a new personalization organization. Jennifer Creegan moves to lead Xbox's media business. Two departures round out the changes: Kevin Gammill is leaving his role as CVP of gaming ecosystem organization, and Roanne Sones is taking a leave of absence before returning as an advisor.

Xbox is Under Real Pressure to Deliver

The reshuffle lands against a difficult financial backdrop. Xbox reported a 33% decline in hardware revenue in Q3, along with a 5% drop in content and services. Monthly active users and streaming hours hit record highs in the same period, which tells a complicated story. The audience is there, but converting that engagement into revenue is not working as well as it should.

The CoreAI appointments are notable given that Sharma has publicly insisted Xbox faces no pressure from Microsoft to push AI into its products. Bringing in four executives from an AI-focused division while canceling an AI-powered feature is a tension worth watching. The stated focus going forward is on hardware, content, Game Pass sustainability, and expansion into China and emerging markets. 

Xbox is losing the console hardware game to Sony’s PlayStation and is struggling to maintain its identity as a serious competitor in the gaming market. All of its games are available on PC, which is making it increasingly hard for gamers to justify investing in a platform without exclusives.