Xbox Leadership Reshuffle: Asha Sharma Moves to "Move Faster" and Cut Underperforming Features

Xbox boss Asha Sharma has announced a massive leadership reshuffle within the company's platform technology teams. The restructuring comes as Microsoft's gaming division attempts to rebuild its market position and prepare for the release of Project Helix, the much-anticipated next-generation console.

In an internal memo, Sharma emphasized that these changes are essential to building the capacity needed to evolve the Xbox brand. She noted a current struggle with efficiency, stating, "Right now, it is too hard to ship impact quickly." To address this, Sharma is bringing several former colleagues from Microsoft's CoreAI division into key roles at Xbox.

Phasing Out Copilot on Console

As part of this strategic pivot, Sharma confirmed that Microsoft is retiring certain features that no longer align with the company's future direction. Most notably, development of Gaming Copilot on consoles will cease, and the service will be wound down on mobile platforms.

Previously available in beta via the Xbox mobile app, Windows 11 Game Bar, and ROG Ally handhelds, Gaming Copilot was intended to act as a "personal gaming sidekick." While the feature offered:

  • In-game assistance to help players get unstuck or pass roadblocks
  • Personalized coaching and gameplay tips
  • Strategic brainstorming and insights
  • Tailored gaming recommendations

The decision to retire these features marks a significant shift in how Xbox intends to allocate its resources moving forward.

New Leadership Roles and Team Changes

The reshuffle introduces a mix of veteran Xbox talent and new voices from the AI sector to help get the business back on' track. Key appointments include:

  • Jason Ronald: The 20-year Microsoft veteran has been elevated to a position accountable for Project Helix and the Xbox platform.
  • Jared Palmer: Joining from CoreAI, he will focus on developer tooling, infrastructure, and scaling high-quality games.
  • Tim Allen: Another CoreAI recruit, Allen will lead experience design with a "fan-first" focus.
  • Evan Chaki: Moving from CoreAI to run a new engineering group aimed at simplifying development processes.
  • Jonathan McKay: Appointed as the new Head of Growth for Xbox.
  • David Schloss: A former colleague of Sharma's at Instacart, who will lead the Xbox subscription and cloud business.

While some may view the influx of AI specialists with scrutiny, the internal sentiment is that these moves are about securing the best talent to reduce friction for both players and developers.

Addressing Declining Revenue and Player Frustration

These structural changes follow a difficult financial period for Microsoft's gaming division. In the quarter ending March 31, 2026, the company saw significant declines:

  • Gaming revenue decreased by 7%
  • Xbox content and services revenue dropped by 5%
  • Xbox hardware revenue plummeted by 33%

Sharma has been vocal about the need to earn back player trust. Recent efforts to win over the community have included rebranding initiatives, such as moving away from corporate-sounding "Microsoft Gaming" labels and updating the Xbox logo. However, the company still faces challenges regarding service pricing and the strength of its PC presence.

With the new leadership in place, the focus remains clear: move faster, deepen community connections, and prepare for the next era of Xbox hardware.