Following the departure of Microsoft Gaming CEO Phil Spencer, Xbox President Sarah Bond is also stepping down—a move that removes a leader widely considered Spencer’s most likely successor.
Microsoft’s gaming division has been shaken by a sweeping executive reorganization that caught even high-level staff by surprise. Alongside the exit of gaming chief Phil Spencer, Xbox President Sarah Bond is leaving the company, marking a sudden end for an executive who was long viewed as the natural heir to the top spot.
The reshuffle was officially confirmed on Friday, though reports suggest the announcement was pushed forward. Microsoft was reportedly forced to break the news prematurely after details leaked to the press, pre-empting several upcoming investigative reports.
This expedited timeline led to internal confusion, with many employees learning about the leadership changes through media headlines rather than internal memos. The chaos was evident on Bond’s own social media channels; her professional profile displayed a pre-scheduled post promoting Xbox just moments before her resignation was formally announced.
Bond ascended to the presidency in October 2023, immediately following the finalized $68.7 billion acquisition of Activision Blizzard. She was instrumental in securing regulatory clearance for the deal and subsequently became the brand’s primary public ambassador while Spencer managed the integration of the massive new subsidiary.
However, sources indicate that her strategic vision met increasing resistance internally. Bond was a staunch advocate for the “Xbox Everywhere” philosophy, aggressively shifting the brand’s focus from dedicated consoles to cloud infrastructure and mobile ecosystems. The “This is an Xbox” marketing campaign—which pitched smartphones and TVs as viable alternatives to hardware—reportedly alienated both core fans and members of her own team.
Compounding these issues was the stagnation of her signature mobile storefront, which missed its projected July 2024 launch and has yet to materialize. During her tenure, Xbox hardware revenue saw a decline for three consecutive fiscal years, a downward trend currently forecasted to persist through 2026.
Insiders report that many current and former Xbox staff reacted to Bond’s departure with relief. While she was widely respected for her prowess in forging industry partnerships, she was also criticized for a demanding leadership style and a perceived intolerance for dissent regarding her long-term strategy.
Source: iXBT.games