Microsoft Gaming CEO Phil Spencer is retiring, effective Monday, February 23, 2026. This news comes amid a major internal leadership change impacting not only Spencer but also Xbox president Sarah Bond.
Spencer has worked at Xbox for a long time, first joining Microsoft in 1998. He became Head of Xbox during the Xbox One generation, attempting to fix what many saw as a disastrous launch after the Xbox 360’s popularity. Under his leadership came the current Xbox Series X/S generation, as well as numerous studio acquisitions, among other achievements.
For a long time, Xbox president Sarah Bond has been publicly thought to be Phil Spencer’s successor. However, Bond has officially resigned. The new CEO of Microsoft Gaming will be Asha Sharma, who has previously served as president of Microsoft’s CoreAI product. Xbox Game Studios head Matt Booty is being promoted to Chief Content Officer amid this shuffle.
New Xbox Leadership
- CEO of Microsoft Gaming: Asha Sharma
- Chief Content Officer: Matt Booty
In internal emails acquired by IGN, Microsoft CEO Satya Nadella said, “I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.” Spencer also sent out an email addressing Microsoft staff:
“Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.”
Spencer went on to reveal that Asha Sharma would become the CEO of Microsoft Gaming, explaining he would remain in an advisory role through the summer to “support a smooth handoff.” Sharma is a former VP of Product and Engineering at Meta, former Instacart COO, and also a board member of The Home Depot. She has not been at Microsoft long, having joined the company in 2024. In her part of the email, she outlined three commitments for her role as Microsoft Gaming CEO:
- “First, great games. Everything begins here.”
- “Second, the return of Xbox. We will recommit to our core Xbox fans and players.”
- “Third, future of play. We are witnessing the reinvention of play.”
Sharma also ended her memo with a promise that “As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
While impossible to predict the future, Sharma’s words here may speak to several gamers. Many have become increasingly concerned about generative AI’s role in video games, and while this is not a commitment to using no genAI whatsoever, it is a commitment to ensuring Xbox games are high quality. “AI slop” has a certain connotation to it, and it’s rather far-reaching.
Overall, this is the latest development in an industry being squeezed and undergoing numerous changes. Microsoft, Sony, Nintendo, and all third-party publishers are subject to the same tumultuous industry, and it’s likely many more changes—leadership or otherwise—will take place in the coming months and years across gaming giants.
- Date Founded
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April 4, 1975
- Headquarters
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Redmond, Washington, United States
- CEO
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Satya Nadella
- Subsidiaries
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activision blizzard, Microsoft Studios, Mojang Studios, Microsoft Game Studios, Xbox Game Studios
