Xbox CEO Asha Sharma confirmed sweeping changes including winding down Copilot on mobile and halting console development entirely. The move aims to reverse declining revenue as Sharma outlined leadership shake-ups in a memo to staff. Sharma, who took over from Phil Spencer in February after executive roles at Meta and Instacart, emphasized Xbox needs to move faster and strengthen community connections.

Four executives from CoreAI are joining Xbox as part of the overhaul. Jared Palmer, GitHub's former senior VP, moves to technical staff. Tim Allen takes over Xbox design while Jonathan McKay, former ChatGPT growth lead, becomes Xbox's head of growth. Meanwhile, two veteran Microsoft executives—Kevin Gammill and Roanne Sones—are departing after 24 years with the company.

Sharma's leadership changes come one month after she cut Game Pass Ultimate prices following an internal memo acknowledging the service had become too expensive. The new Xbox leader described Copilot cuts as features no longer aligned with the company's direction, signaling a strategic refocusing toward core gaming experiences and community engagement over experimental AI ventures.