Microsoft has announced a significant leadership change for its gaming division as industry veteran Phil Spencer prepares to retire after nearly four decades with the company. Asha Sharma, who previously served as a top executive at Meta and Instacart, is stepping in as the new CEO of Microsoft Gaming.
Satya Nadella, Microsoft’s Chairman and CEO, shared the news with employees on Friday, noting that Sharma brings a wealth of experience in scaling global platforms. She will report directly to Nadella as she leads the Xbox brand into its next phase of growth.
The transition marks the end of an era for Phil Spencer, who joined Microsoft as an intern in 1988. During his 12 years leading the gaming wing, Spencer oversaw the massive acquisitions of Activision Blizzard, ZeniMax, and Minecraft. He will stay on as an advisor through the summer to ensure a smooth handoff.
In his farewell message, Spencer expressed his pride in the community built over the last 25 years. He also noted that Sarah Bond, a key figure in the growth of Game Pass and cloud gaming, has decided to leave the company to start a new chapter.
As part of the restructuring, Matt Booty has been promoted to Executive Vice President and Chief Content Officer. Reporting to Sharma, Booty will oversee the creative output of nearly 40 internal studios, including those behind hits like Call of Duty, Halo, and World of Warcraft.
In her first message to the team, Sharma laid out a clear vision for the future of Xbox. She committed to prioritizing “great games” above all else and promised to return to the “renegade spirit” that originally defined the Xbox brand.
Addressing modern industry concerns, Sharma took a firm stance on the use of emerging technology. While acknowledging the role of AI, she told staff the company would not “flood our ecosystem with soulless AI slop,” emphasizing that games are art crafted by humans.
Sharma also reaffirmed Microsoft’s commitment to physical hardware, stating that the company will recommit to the Xbox console as a vital part of the gaming experience, even as it expands further into mobile and cloud platforms.
“My first job is simple,” Sharma said. “Understand what makes this work and protect it.” On X she said her three commitments in her new role are “great games”, the “return of Xbox” and “future of play.”
How do you feel about this huge shake up at Microsoft and the future of the Xbox?
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