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Phil Spencer Retires From Microsoft Gaming as Asha Sharma Is Named CEO

Microsoft frames the transition as planned succession during a tougher year for Xbox revenue.

Overview

  • Spencer’s retirement takes effect February 23 after 38 years at Microsoft, and he will remain an advisor through the summer to support the handoff.
  • Asha Sharma, previously president of Microsoft’s CoreAI group, becomes executive vice president and CEO of Microsoft Gaming and will report to Satya Nadella.
  • Xbox president Sarah Bond is resigning, while Xbox Game Studios head Matt Booty is promoted to executive vice president and chief content officer reporting to Sharma.
  • In internal messages, Sharma outlined three priorities: great games, a renewed focus on Xbox with console at its core across devices, and the future of play with new business models.
  • Sharma cautioned against overreliance on generative tools, saying Microsoft will not ‘flood our ecosystem with soulless AI slop,’ as the division navigates recent revenue declines and impairment charges.