Xbox is winding down Copilot on mobile and halting console development under new CEO Asha Sharma. The move follows a reorganization incorporating CoreAI executives and reverses earlier plans to launch the feature on consoles this year.

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Xbox has launched a new division named XP to expand its franchises into film, television, products, live events, and partnerships. The unit consolidates existing teams under President Kayleen Walters to support the company's stated aim of becoming the top entertainment company.
Meta and Microsoft are cutting employee use of Anthropic’s Claude AI and directing staff toward their own coding tools, The Information reported. The changes reflect tighter internal AI budgets while customer access to Claude through Microsoft platforms continues to expand.
Microsoft has introduced a local edition of MAI-Code-1.1-Flash that runs on Windows PCs without server access. The model requires substantial memory and is coming to GitHub Copilot in experimental preview by the end of October, starting with Nvidia RTX Spark PCs.
At its Windows and Surface event, Microsoft opened preorders for the $2,599 Surface Laptop Ultra and the $5,999 Surface RTX Spark Dev Box, and said Copilot will be able to use files and act across Windows in the coming months.
Microsoft Dataverse is affected by critical vulnerability CVE-2026-88131, which allows remote code execution. The flaw scores 9.8 on CVSS; Microsoft says it has already fully mitigated it and customers have nothing to patch.