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Phil Spencer Retires as Xbox Head
Microsoft‘s gaming division is entering a new chapter following the announcement that Phil Spencer will retire from his role as head of Xbox next week, on February 23.
Spencer has served as the public face of the green side of gaming for roughly 12 years, guiding the brand through one of its most turbulent and transformative periods. His tenure included the recovery from the initial struggles against incumbents, as well as the strategic pivot toward subscription services and major studio acquisitions.
Sarah Bond Also Steps Down
In a further twist, Xbox President Sarah Bond has also officially resigned. Bond had widely been viewed as a potential successor to Spencer and a strong advocate for Microsoft’s current gaming strategy.
The simultaneous departure of both executives marks one of the most significant leadership transitions in the division’s history.
A New Chief From Microsoft’s AI Division
Asha Sharma, previously President of Microsoft’s CoreAI division, is taking over as the new head of Microsoft Gaming. Prior to joining Microsoft in 2024, Sharma served as Meta’s VP of Product and Engineering.
In her first statement as gaming chief, Sharma addressed the role artificial intelligence will play in the future of the business. She noted that AI will continue shaping the evolution of gaming, but emphasised that Microsoft will not prioritise short-term efficiency over quality. According to Sharma, games remain a human-driven art form, enhanced by technology rather than replaced by it.
Supporting Sharma in this transition is Matt Booty, who has been promoted from Head of Xbox Game Studios to Chief Content Officer. Booty stated that Sharma’s leadership style centres on asking difficult questions and ensuring future policies align with the needs of both players and developers.
The End of an Era
During his time at the helm, Spencer oversaw some of the most defining moves in all of gaming. These included the acquisitions of Bethesda and Activision Blizzard, the expansion of Xbox Game Pass as a central pillar of Microsoft’s gaming strategy, and efforts to strengthen first-party development.
With Spencer’s retirement and Bond’s resignation, Microsoft Gaming now moves into a new era. While artificial intelligence appears poised to play a greater strategic role, company leadership insists that the core will remain rooted in creative, human-led game development.
