Phil Spencer is stepping down as CEO of Microsoft Gaming after 40 years at Microsoft. He will be replaced by Asha Sharma from CoreAI. However, he is not the only major change in Xbox leadership: Sarah Bond, president of Xbox, has resigned, and Matt Booty, head of Xbox Game Studios, will be promoted to chief content officer.
Spencer has been the most recognizable face of Xbox for the past 15 years, although his career at Microsoft began in 1988. He was also present at the launch of the first Xbox in 2001. His departure will take effect on Monday, February 23, though early reports say he will remain as an advisor for some time.
“I want to thank Phil for his extraordinary leadership and partnership,” said Satya Nadella, CEO of Microsoft, in an email sent to Microsoft staff. “Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.”
The message also included a note from Spencer confirming that last fall he spoke with Satya to begin a new “chapter” and plan the transition: “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.”
Who Is Asha Sharma, Phil Spencer’s Replacement?
Spencer also had words for Asha Sharma, the new CEO of Microsoft Gaming. She was president of product development in Microsoft’s CoreAI division, and before joining Microsoft in 2024, she served as an executive at Instacart and as vice president of product at Meta.
“I want to be the first to welcome her to this incredible team,” said Phil Spencer. “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 has committed to “understand what makes this work and protect it. That starts with three commitments,” which are great games, the “return of Xbox,” and the future of gaming, with “new business models” and “new ways to play,” along with the promise not to overuse and over-monetize its franchises: “We will build a shared platform and tools that empower developers and players to create and share their own stories.”
Spencer ended his message by saying he was proud of what had been built “over the last 25 years” and expressed “complete confidence” in the future: “I’ll be cheering you on in this next chapter as Xbox’s proudest fan and player.”
