Xbox Leadership Overhaul: CEO Asha Sharma Targets AI and Growth in 2026

Recent Gaming News indicates that Xbox is undergoing a significant corporate transformation in 2026, as the company seeks to reverse a trend of declining hardware revenue. In the world of Video Games, the leadership team at the division formerly known as Microsoft Gaming is being overhauled by new CEO Asha Sharma, who is prioritizing artificial intelligence expertise to reshape the platform's future.

The Strategic Shift Toward AI Expertise

In a memo obtained by CNBC, CEO Asha Sharma outlined a vision for the company that focuses on organizational agility and technical depth. Sharma, who originated from the Microsoft CoreAI team, is populating the Xbox leadership ranks with former colleagues who possess deep expertise in artificial intelligence. This move is intended to address internal bottlenecks that have hindered the company's ability to ship products with the speed and efficiency required in the current market.

"We need to evolve how we work and how we are organized across our platform," Sharma stated in the internal communication. She noted that the current structure makes it difficult to ship impact quickly, adding that the division has spent too much time focusing inward rather than engaging with the gaming community. By bringing in leaders with specialized AI backgrounds, the company aims to strengthen its fundamental capabilities.

New Leadership Appointments

The restructuring involves several key personnel changes that signal a new direction for the Xbox platform. The new leadership team includes individuals who have previously served in high-level roles within Microsoft’s AI divisions:

• Jared Palmer: Appointed as VP of Engineering; formerly the VP of Product for CoreAI.
• Tim Allen: Appointed as design lead; formerly the VP of Design for CoreAI.
• Jonathan McKay: Appointed as the leader of Xbox growth; formerly the Head of Growth for ChatGPT.
• Evan Chaki: Appointed to the leadership team; formerly the General Manager for CoreAI.

These appointments coincide with the departure of long-standing executives. Roanne Sones, the corporate VP of Xbox devices and ecosystem, is currently on a leave of absence, while Kevin Gammill, the corporate VP of Xbox user experience, is stepping down from his position. For more details on these organizational shifts, you can follow our industry news coverage.

Addressing Declining Hardware Sales

The necessity for this change stems from a period of poor performance for the Xbox hardware business. Recent quarterly earnings reports have shown a broad decline in revenue, reflecting a difficult generation for the brand's console sales. Sharma emphasized that the goal of this reorganization is to build a platform that is more affordable, personal, and open to the players it serves.

"This is an important time for Xbox," Sharma wrote. "Our goal with this change is simple: build a platform that is affordable, personal, and open by staying close to the work and the people we serve. We will continue to add the capabilities needed to get there." This shift suggests that the company is moving away from previous hardware-centric strategies in favor of a model that prioritizes user experience and software-driven growth.

Termination of AI Copilot Development

In a confirmation of the organizational changes posted to her social media account, Sharma revealed that the company is taking immediate steps to prune features that do not align with its new trajectory. Most notably, Xbox is officially canceling the development of the AI Copilot feature for consoles. Furthermore, the company is beginning the process of winding down the existing Copilot support on mobile devices.

This decision reflects a broader strategy to streamline operations and focus resources on core functionalities that directly benefit the gaming community. By removing features that do not meet the new strategic requirements, the leadership team hopes to reduce friction for both developers and players. You can find more updates regarding the platform's evolution in our Xbox console coverage.

Frequently Asked Questions

Who is the new CEO of Xbox as of 2026?

Asha Sharma is the current CEO of Xbox, leading the company through a major organizational restructuring.

Is Xbox still developing AI Copilot for consoles?

No, Xbox has officially stopped the development of the AI Copilot feature for consoles and is winding down its availability on mobile devices.

What is the primary reason for the leadership changes at Xbox?

The leadership changes were initiated to address declining console hardware revenue and to improve the efficiency and speed of product delivery.