What just happened? In news that will undoubtedly come as a devastating blow to anyone who owns an Xbox console, Microsoft has confirmed that it is no longer developing Copilot AI for the Series X and S machines. New CEO Asha Sharma said the move was because Copilot doesn't "align" with Xbox.

It was only two months ago at GDC 2026 when Sonali Yadav, Xbox's Gaming AI partner group product manager, said Gaming Copilot would be coming to current-gen Microsoft consoles, with the rollout expected to take place this year.

Microsoft first introduced Copilot for Gaming in March 2025. The AI tool was positioned as a "sidekick" that aids players by guiding them through certain aspects of gameplay. An example was in Overwatch 2, where Copilot analyzed gameplay mistakes and suggested optimal hero picks to complement team compositions, detailing the strengths and weaknesses of each character.

The Copilot for Gaming beta soon rolled out to Xbox Insiders on PC. It was set to expand to console and mobile, but not anymore.

In a post on X, Sharma wrote about Xbox moving faster, deepening community connections, and addressing friction for both players and developers.

"As part of this shift, you'll see us begin to retire features that don't align with where we're headed. We will begin winding down Copilot on mobile and will stop development of Copilot on console," the Xbox boss added.

– Nicolas (@Wander_Mindset) May 6, 2026

It was reported last month that Microsoft had at least 80 products carrying the Copilot name – a perfect illustration of a company ramming AI down people's throats even when opinion of the product ranges from indifference to outright dislike.

Unsurprisingly, the move has been praised by most of the 2,700 comments under the post. "This is 100% too good to be true. Where is the trade off?" wrote one user.

Copilot for Gaming on the Xbox mobile app is also being killed off.

This is another Sharma decision that has been welcomed. Replacing Phil Spencer in February and her background as an AI executive meant she had a lot of work to do to win over gamers, but the CEO got off to a good start by lowering the prices of Game Pass Ultimate and PC, both of which had increased in 2025.

Sharma still has to deal with Xbox's financial troubles. The division saw a 5% YoY decline in content and services revenue and a massive 33% fall in hardware revenue during the last quarter, continuing a long-running trend.