Microsoft AI Executive to Succeed Retiring Xbox Head Phil Spencer

In a seismic shift for Microsoft’s gaming division, the company has announced a sweeping leadership restructuring that sees both Microsoft Gaming CEO Phil Spencer and Xbox President Sarah Bond departing their roles. Stepping into the vacancy is Asha Sharma, formerly the Corporate Vice President of Microsoft’s CoreAI team, who was officially appointed as the new CEO of Microsoft Gaming this past Friday.

In an internal memorandum addressed to staff, Sharma articulated her vision for the brand’s future, emphasizing a deep respect for its legacy. “We will recommit to our core Xbox fans and players—the community that has invested in us over the last 25 years—and to the visionary developers who craft the expansive universes that resonate with players across the globe,” she stated.

Supporting this transition is Matt Booty, previously the head of Xbox Game Studios, who will now transition into the role of Chief Content Officer reporting directly to Sharma. In his own message to the team, Booty expressed enthusiasm for the new leadership, noting that his initial discussions with Sharma centered on a shared “commitment to making great games” as the primary driver of the company’s long-term success.

Spencer’s official retirement is set to begin on Monday, February 23. Reflecting on the timing, he disclosed that he first broached the subject of his departure with Microsoft CEO Satya Nadella last autumn. Nadella noted that the leadership change has been approached with “deliberate intention” to ensure organizational stability. “Xbox has always been more than just a business,” Nadella wrote. “It is a vibrant community of creators and players who deserve a thoughtful plan for the road ahead.”

Spencer also offered high praise for Sarah Bond, acknowledging her transformative influence on the brand. “Sarah has been instrumental during a defining era for Xbox,” Spencer remarked, citing her work in evolving platform strategy, expanding the reach of Game Pass and cloud gaming, and steering the brand through critical hardware launches. While Spencer’s departure was accompanied by detailed messages, Bond has not yet issued a public statement regarding her resignation.

Bond’s exit marks a notable departure from her role as the public face of Xbox’s future initiatives, where she recently spearheaded discussions regarding the Asus ROG Ally integration and the development of next-generation Xbox hardware. For Spencer, the move concludes a storied tenure that began in 1988 as a Microsoft intern. A foundational member of the team since the original Xbox debuted in 2001, he had served as the division’s CEO since 2022.

Source: Polygon