Xbox CEO Asha Sharma announced the company will remove Microsoft's Copilot AI from its mobile app and consoles, marking another retreat for the technology within Microsoft's ecosystem. The move comes as part of broader strategy adjustments following criticism of Microsoft's product direction.

Copilot, introduced as an in-game assistant designed to offer contextual advice based on gameplay, launched in the Xbox mobile app last May. Sharma stated the AI feature doesn't align with Xbox's current direction, saying the brand needs to "move faster, deepen our connection with the community, and address friction for both players and developers."

The decision coincides with leadership changes at Xbox, with several key hires coming from Sharma's former role as President of CoreAI. Rather than public-facing AI products, the technology may be integrated into how Xbox operates and tools for developers. This represents a concrete shift in Xbox's priorities under new leadership.