Microsoft's gaming division is undergoing a significant leadership change, as Phil Spencer, the CEO who has steered Xbox for over a decade, announced his official retirement on February 23, 2026, concluding a 38-year career at Microsoft. Concurrently, Xbox President Sarah Bond, previously considered a top contender for Spencer's succession, has also decided to depart the company.
Microsoft has confirmed that Asha Sharma, currently Corporate Vice President of CoreAI Product, will take over as CEO of Microsoft Gaming. Matt Booty, head of Xbox Game Studios, has been promoted to Chief Content Officer.
In a memo to employees, Microsoft CEO Satya Nadella expressed gratitude for Spencer's "outstanding leadership and partnership." He noted that over the past 38 years, Spencer helped transform the way Microsoft operates and expanded its gaming business. Nadella added that Asha Sharma's experience in building global platforms and consumer services positions her to lead the gaming business into its next phase.
▼New Microsoft Gaming CEO Asha Sharma and new Xbox Chief Content Officer Matt Booty
Spencer reflected on his decision in a letter to his team, stating that he had discussed starting a new chapter in his life with Satya last fall. He emphasized their desire for a well-planned transition to ensure stability and solidify the foundation they had built.
He underscored that Xbox is more than just a business; it's a community of players and creators that "deserves a thoughtful roadmap for the future." Spencer also remarked that "today marks a new chapter for Microsoft Gaming, and I have full confidence in Asha's leadership. I will assist with the transition in an advisory role until the summer."
Incoming CEO Asha Sharma outlined three key priorities in her own memo. She stated that her primary task is simple: to understand and safeguard the keys to success. She stressed that "everything starts with great games," and that "we must first create experiences players truly love."
Sharma affirmed a renewed commitment to Xbox's core players while also expanding to PC, mobile, and cloud to create seamless cross-device experiences. She added that "gaming will always be a human art form, and we will not allow soulless AI content to flood our ecosystem."
During Spencer's tenure, Xbox championed backward compatibility, launched Game Pass, and oversaw major acquisitions including ZeniMax and Activision Blizzard. With this leadership change, Microsoft's gaming division officially enters a new era, and observers will be watching closely to see how the new team redefines Xbox's position in the console, cloud, and AI landscape.
via： Eurogamer.net