Microsoft Gaming has undergone a significant leadership transition with Phil Spencer retiring after nearly 40 years and Asha Sharma, previously president of CoreAI, stepping in as CEO. Xbox president Sarah Bond is also departing the company after eight years. The changes come amid ongoing challenges in the gaming division, including recent layoffs and studio closures.
Phil Spencer, who joined Microsoft in 1988 and became head of Xbox in 2014, announced his retirement on February 21, 2026. In an email to staff, he described the decision as part of a planned transition discussed with Microsoft CEO Satya Nadella last fall. "Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team," Spencer wrote. He will remain in an advisory role through the summer.
Asha Sharma, a former marketer with experience at Meta and Instacart, brings expertise in technology and commerce. In her first email to staff, she expressed "humility and urgency," noting the team's extraordinary achievements and the rapid changes in gaming. Sharma outlined three commitments: empowering studios and investing in iconic franchises like Halo and Forza; renewing focus on Xbox hardware, including the next console; and innovating new ways to play without relying on "soulless AI slop."
Xbox president Sarah Bond, who joined in 2017 and became president in 2022, shared a farewell message on LinkedIn. She congratulated Sharma, praising her commitment to players and developers, and will serve as a special advisor for the transition. Bond highlighted growth in PC and cloud gaming and the foundation for an open platform. She thanked Spencer for mentorship and Nadella for support.
Matt Booty, head of Xbox Game Studios, has been promoted to executive vice president and chief content officer, working closely with Sharma.
On X, Sharma engaged fans by sharing her top games—Halo, Valheim, and Goldeneye—and her Gamertag, showing recent playtime in titles like Halo Infinite and Ball x Pit. When asked about bringing back exclusives, she replied, "Hear you," to a fan emphasizing their importance for Xbox's identity. Some fans expressed skepticism about her gaming credentials amid the brand's challenges.
