A monumental leadership transition is underway at Microsoft as Phil Spencer, the long-standing CEO of Microsoft Gaming, has announced his retirement. In a surprising turn of events first reported by IGN, Xbox President Sarah Bond—widely viewed as Spencer’s eventual successor—has also departed from the company. Taking the helm as the new CEO of Microsoft Gaming is Asha Sharma, who previously spearheaded the company’s CoreAI initiatives.
As part of this executive restructuring, Matt Booty, formerly the head of Xbox Game Studios, has been elevated to the role of Chief Content Officer. In this new capacity, he will work in tandem with Sharma to oversee the creative direction of the brand’s expanding portfolio. Microsoft CEO Satya Nadella lauded Spencer’s 38-year tenure, noting his “extraordinary leadership” in transforming the gaming division over the past decade.
Below are the official communications shared with Microsoft staff regarding this seismic shift in leadership.
A Farewell from Phil Spencer
Reflecting on nearly four decades at the company, Spencer expressed profound gratitude for his journey from intern to executive.
“When I first joined Microsoft as an intern in 1988, I could never have envisioned the incredible products we would build or the global community of players we would serve. It has been the privilege of a lifetime. Last autumn, I informed Satya of my desire to step back and begin a new chapter. Since then, we have worked diligently to ensure a stable transition.”
Spencer expressed immense confidence in Asha Sharma’s appointment, citing her “curiosity, clarity, and deep commitment” to the gaming ecosystem. He also confirmed that he will remain in an advisory capacity through the summer to facilitate a seamless handoff. Regarding Sarah Bond’s exit, Spencer acknowledged her pivotal role in expanding Game Pass and cloud gaming, wishing her success in her future endeavors.
Matt Booty on the Creative Path Forward
Now serving as Executive Vice President and Chief Content Officer, Booty emphasized stability and creative continuity.
“Phil has been a tireless champion for our studios, and I’ve gained invaluable insight from his mentorship. Looking ahead, I am eager to partner with Asha. Our early dialogues have focused on the fundamental importance of quality game development. Despite the industry’s rapid evolution, our strength lies in our resilient franchises and the talented teams that bring them to life.”
Booty reassured the organization that no further structural changes are currently planned for the individual game studios.
Asha Sharma’s Vision for Microsoft Gaming
The incoming CEO outlined a strategy defined by “humility and urgency,” focusing on three core pillars:
- Creative Excellence: “Everything begins with great games. We will empower our studios to take risks, invest in iconic IP, and explore bold new concepts. I have promoted Matt Booty to ensure we remain grounded in the craft of game-making.”
- The Rebirth of Xbox: “We are recommitting to our core console audience while simultaneously breaking down hardware barriers. Whether on PC, mobile, or cloud, the Xbox experience must be seamless and worthy of our community.”
- The Future of Play: “We will invent new ways to play without treating our worlds as static assets to be exploited. As AI evolves, we refuse to flood our ecosystem with soulless content. Games are art, crafted by human hands, and we will protect that integrity.”
Sharma concluded by calling for a return to the “renegade spirit” that originally defined the Xbox brand, promising to challenge existing processes to foster innovation.
Satya Nadella on the Strategic Evolution
Microsoft’s CEO contextualized the changes within the company’s broader consumer ambitions.
“As we celebrate the 25th anniversary of Xbox, our reach has grown to over 500 million monthly active users. Asha Sharma brings a wealth of experience in scaling global platforms from her time at Meta and Instacart, which will be vital for our next era of growth. Phil Spencer’s contribution cannot be overstated—he nearly tripled the size of our gaming business and orchestrated the landmark acquisitions of Activision Blizzard, ZeniMax, and Minecraft.”
This is a developing story.
Source: IGN
