Phil Spencer Leaving Microsoft: Asha Sharma Takes Over Xbox
Phil Spencer, CEO of Microsoft Gaming, is retiring, with Satya Nadella announcing that Asha Sharma, President of Microsoft CoreAI division, will take over the role.
A New Era for Xbox
I am long on gaming and its role at the center of our consumer ambition, and as we look ahead, I am excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, Nadella said.
Over the last two years at Microsoft, and previously as COO at Instacart and VP at Meta, Asha has helped build and scale services that reach billions of people.
Spencers Legacy
Spencer joined Microsoft in 1988 and has worked on Xbox since at least 2001. His biggest impact will likely be remembered as the creation of Game Pass and the wave of studio acquisitions Microsoft completed from 2018 to 2022, including the $68.7 billion purchase of Activision Blizzard King.
Challenges Ahead
While Microsoft has plenty of developers and IP, it has struggled to compete with Sony and Nintendo during the current console generation. The gaming division has gone through widespread layoffs, revenue continued to fall throughout 2025, and prices for both consoles and Game Pass Ultimate were raised.
Matt Booty, current head of Xbox Game Studios, is getting promoted to Chief Content Officer. Sarah Bond, who was assumed to be Spencers successor, is leaving Microsoft.
