After more than a decade in charge of Xbox, Phil Spencer is retiring from his position at the top of Microsoft’s Gaming Division, as laid out in a story from IGN. Sarah Bond, the president of Xbox, is also leaving the company.
Asha Sharma previously president of Microsoft’s CoreAI product, has been promoted to CEO of Microsoft Gaming. Xbox Game Studios head Matt Booty is being promoted to chief content officer. Spencer will remain at Xbox through the summer in an advisory role.
“Last fall, I shared with Satya [Nadella, Microsoft CEO] that I was thinking about stepping back and starting the next chapter of my life,” Spencer said in an email to employees. “From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.
“Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff.”
Sharma laid out her hopes for the future of Xbox in her own email, in which she said she wants to spearhead the “return of Xbox,” and also said that she wants to commit to human-made work and reject “soulless AI slop.” The email read as follows:
My first job is simple: understand what makes this work and protect it. That starts with three commitments. First, great games. Everything begins here. We must have great games beloved by players before we do anything. Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most. I promoted Matt Booty in honor of this commitment. He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry.
Second, the return of Xbox. We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world. We will celebra