Microsoft Kills Xbox Copilot — New CEO Redirects AI from Consumer Features to Backend Infrastructure

The Verge·medium signal

New Xbox CEO Asha Sharma announced the company will wind down Copilot on mobile and stop console development, just two months after signaling a console future for the feature. Sharma is installing four executives from Microsoft's CoreAI division into Xbox's top engineering roles, refocusing AI efforts on 'enhancing real-time graphics, improving discovery, and deepening personalization' — AI embedded in how Xbox builds software, not as a consumer-facing chatbot. A notable signal that consumer AI assistants may not be the right form factor everywhere.