Gaming • Based on reporting from Massivelyop • May 06, 2026
Microsoft has ended development of its Copilot feature for Xbox consoles, a tool that utilized AI to provide in-game guidance and assistance, according to Xbox CEO Asha Sharma. The decision to cancel Copilot development for console and scale back its development on mobile comes after the feature was first introduced in 2024, with the goal of integrating AI-driven capabilities into the Xbox platform.
The cancellation of Copilot is part of a broader restructuring effort within the Xbox division, which has seen the appointment of new executives from Meta and CoreAI. Sharma stated that these new hires are intended to help the division move forward and get back on track, suggesting that while Copilot may be ending, the company's interest in AI-driven technology is not. The exact implications of this shift are not yet clear, but it is evident that Xbox is reevaluating its approach to integrating AI into its products.
In related news, a recent survey published by IGN Entertainment, in collaboration with Kantar and UC Berkeley, has shed light on the gaming habits of thousands of consumers across the US, UK, and Australia. The survey found that 62% of respondents no longer purchase games at full price, with a significant preference for single-player titles among Gen X gamers and multiplayer titles among Gen Z gamers. Additionally, the survey revealed that millennials tend to discover new games through YouTube, while Gen Z gamers rely more on social media. These findings provide valuable insights into the evolving gaming landscape and the changing preferences of gamers.
Valve has also announced that it will restock the Steam Controller, which sold out quickly after its initial release. The company acknowledged that the controller's rapid sell-out was unexpected and expressed regret that not all customers who wanted one were able to purchase it. Valve has promised to provide an update on the expected restocking timeline soon, which will likely be welcome news to fans of the controller.
In a separate development, Bank of America analyst Omar Dessouky has argued that games should be priced at $80 in order to support the struggling games industry. Dessouky's comments come amid ongoing debates about game pricing and the financial sustainability of the industry. His suggestion that Take-Two should raise the price point for Grand Theft Auto VI to $80 has sparked controversy, particularly given the game's significant sales on PC, which account for around 50% of the company's games sales. The proposal to increase game prices will likely be met with resistance from gamers, who are already facing rising costs and increasingly expensive gaming hardware.
The suggestion to raise game prices to $80 has significant implications for the gaming industry, and it is unclear whether such a move would be successful in supporting the industry's financial struggles. The games industry is highly competitive, and any attempt to increase prices could drive consumers to seek out alternative forms of entertainment or to purchase games through unofficial channels. Furthermore, the industry's financial struggles are complex and multifaceted, and it is unlikely that a single solution, such as raising game prices, would be sufficient to address these challenges.
The cancellation of Xbox's Copilot feature, the restocking of the Steam Controller, and the debate over game pricing all reflect the ongoing evolution of the gaming industry. As the industry continues to grow and change, it is likely that we will see further developments and innovations in the coming months and years. The key challenge for companies like Xbox, Valve, and Take-Two will be to balance their financial needs with the demands and expectations of their customers, who are increasingly seeking high-quality gaming experiences at affordable prices.
The survey findings on gaming habits also highlight the importance of understanding the changing preferences and behaviors of gamers. The fact that 62% of respondents no longer purchase games at full price suggests that the traditional model of game sales is evolving, and that companies will need to adapt to these changes in order to remain competitive. The preference for single-player titles among Gen X gamers and multiplayer titles among Gen Z gamers also underscores the diversity of the gaming community and the need for companies to develop games that cater to a wide range of tastes and preferences.
Ultimately, the future of the gaming industry will depend on the ability of companies to innovate and adapt to changing consumer demands, while also addressing the financial and technological challenges that they face. As the industry continues to evolve, it is likely that we will see new developments and innovations that will shape the future of gaming and provide new opportunities for gamers and companies alike.
Electric Observer publishes independent technology analysis based on public reporting and source-linked research.
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