Microsoft’s gaming unit is stepping back from plans to bring its AI assistant directly to consoles, Xbox’s newly appointed chief executive officer (CEO) announced.
In a post on X, Xbox CEO Asha Sharma said the company must “move faster” and reduce internal friction as it works to reconnect with players and developers. The announcement came days after Sharma announced that the company will be “refocusing AI efforts to solving player problems” such as graphics and personalization.
Sharma cited AutoSR, which uses AI models to reconstruct higher-quality images from lower-resolution frames, as an example of the new direction.
Microsoft had previously pitched Copilot for Gaming as a significant part of its AI push across platforms, including Xbox consoles, PC and mobile.
According to the November 2025 update,the assistant was intended to help players complete in-game tasks, provide contextual tips and answer questions in real time without requiring them to leave their game.
Sharma was appointed chief executive of Xbox in February 2026, succeeding longtime gaming head Phil Spencer, who had led the division for more than a decade.
