Phil Spencer, CEO of Microsoft Gaming, is retiring, Satya Nadella has announced. Asha Sharma, the President of Microsoft's CoreAI division is taking on Spencer's characteristic, while Sarah Bond, the most modern President of Xbox, is resigning.
“I am lengthy on gaming and its characteristic on the heart of our client ambition, and as we peek ahead, I’m mad to share that Asha Sharma will change into Govt Vice President and CEO, Microsoft Gaming, reporting to me,” Nadella says. “Over the closing two years at Microsoft, and beforehand as Chief Working Officer at Instacart and a Vice President at Meta, Asha has helped plan and scale services that extend billions of folks and toughen thriving client and developer ecosystems. She brings deep expertise building and rising platforms, aligning enterprise devices to lengthy-interval of time price, and working at world scale, that might per chance be serious in leading our gaming enterprise into its next generation of growth.”
I’m mad for @asha_shar as she steps into the CEO characteristic. She’s becoming a member of an magnificent community of folks; groups plump of talent, heart, and a deep dedication to the gamers they support. Watching her lean in with curiosity and an valid desire to pink meat up the foundation now we indulge in constructed…
— Phil Spencer (@XboxP3) February 20, 2026
In a thread on X, Spencer shared his tips on Sharma’s original place. “I’m mad for [Asha Sharma] as she steps into the CEO characteristic,” Spencer wrote. “She’s becoming a member of an magnificent community of folks; groups plump of talent, heart, and a deep dedication to the gamers they support. Watching her lean in with curiosity and an valid desire to pink meat up the foundation now we indulge in constructed supplies me self assurance that our Xbox communities might per chance be well supported within the years ahead.”
Alongside Sharma, Matt Booty, the most modern head of Xbox Game Studios, is getting promoted to Chief Tell material Officer, and might per chance doubtless well even picture to Sharma. Sarah Bond, who adore Spencer served as a public face for the Xbox ticket and became assumed to be his successor, is leaving Microsoft to “delivery up a brand original chapter.” Bond has yet to originate a public assertion about her resignation.
Spencer joined Microsoft in 1988, and has labored on Xbox since a minimal of 2001. He assumed responsibility for Microsoft's gaming ticket and its different studios and associated subscription products in 2013, ahead of turning into an Govt VP of Gaming in 2017 and later CEO of Microsoft Gaming in 2022. Spencer's greatest impact on Xbox is mostly remembered because the advent of Game Run, Microsoft's “Netflix for Games” and the wave of studio acquisitions Microsoft performed from 2018 to 2022, which integrated smaller studios adore Double Stunning and the giant $68.7 billion buy of Activision Blizzard King.
While Microsoft has just a few builders and IP to tumble wait on on, it's struggled to compete with the likes of Sony and Nintendo at some stage within the most modern console generation. Microsoft's gaming division has gone via current layoffs, its income continued to tumble at some stage in 2025 and it raised the prices of both its consoles and Game Run Final, which doubtless received't wait on things going forward. Sharma is in many ways inheriting a old automobile.
As a ways as her plans creep, Sharma’s email to group that became integrated in Nadella's announcement is gentle on crucial capabilities. Sharma says she plans to proceed increasing “substantial video games,” wants to “recommit” to core Xbox fans and “receive original enterprise devices and original ways to play.” Whether or now now not that’s enough to turn Xbox's fortunes spherical stays to be considered.
Update, February 20, 4:52PM ET: Added assertion from Phil Spencer shared on X.
This article originally looked on Engadget at https://www.engadget.com/gaming/xbox/xbox-head-phil-spencer-is-leaving-microsoft-212838419.html?src=rss
