Phil Spencer Exits as Xbox CEO: Microsoft Gaming Shake-Up

Phil Spencer is retiring as Microsoft Gaming CEO after almost 40 years with the Xbox proprietor and 12 years in his present function. He will keep on in an adviser capability till later within the 12 months.

Asha Sharma, most just lately president of product improvement for Microsoft’s CoreAI division, will likely be changing Spencer as the brand new chief and government vice chairman of Microsoft Gaming. Prior to becoming a member of Microsoft in 2024, Sharma was chief working officer of Instacart and beforehand vice chairman of product at Meta.

As a part of the shake-up that features Spencer’s retirement and Sharma’s promotion, Microsoft Gaming may even see Xbox president Sarah Bond exit the corporate and Matt Booty promoted to chief content material officer.

Microsoft Gaming consists of almost 40 improvement studios, together with Activision, Bethesda, Blizzard, King, Mojang and Xbox Game Studios – that are liable for high IPs together with “Call of Duty,” “Candy Crush,” “Diablo,” “The Elder Scrolls,” “Fallout,” “Halo,” “Minecraft” and “World of Warcraft” — in addition to the Xbox gaming console platform and providers throughout console, PC, cloud and cell.

“When I walked through Microsoft’s doors as an intern in June of 1988, I could never have imagined the products I’d help build, the players and customers we’d serve, or the extraordinary teams I’d be lucky enough to join. It’s been an epic ride and truly the privilege of a lifetime,” Spencer stated in a memo to Microsoft Gaming workers Friday. “Last fall, I shared with [Microsoft CEO Satya Nadella] that I was thinking about stepping back and starting the next chapter of my life. 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.”

Spencer continued: “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.”

In his personal inside be aware, Microsoft CEO Satya Nadella instructed workers: “I am long on gaming and its role at the center of our consumer ambition, and as we look ahead, I’m excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, reporting to me. Over the last two years at Microsoft, and previously as Chief Operating Officer at Instacart and a Vice President at Meta, Asha has helped build and scale services that reach billions of people and support thriving consumer and developer ecosystems. She brings deep experience building and growing platforms, aligning business models to long-term value, and operating at global scale, which will be critical in leading our gaming business into its next era of growth.”

In her first message to the Xbox workforce following the announcement of her promotion, Sharma wrote she feels “two things at once: humility and urgency” in taking over the function of CEO.

“Humility because this team has built something extraordinary over decades,” Sharma stated. “Urgency because gaming is in a period of rapid change, and we need to move with clarity and conviction. I am stepping into work shaped by generations of artists, engineers, designers, writers, musicians, operators and more who create worlds that have brought joy and deep personal meaning to hundreds of millions of players. The level of craft here is exceptional, and it is amplified by Xbox, which was founded in the belief that the power of games connect people and push the industry forward. Thank you to Phil for his leadership, and to every studio, platform, and operations team that built this foundation. We are stewards of some of the most loved stories and characters in entertainment and bring players and creators together around the fun and community of gaming in entirely new ways.”

See Spencer’s memo to workers in full beneath.

When I walked by Microsoft’s doorways as an intern in June of 1988, I may by no means have imagined the merchandise I’d assist construct, the gamers and prospects we’d serve, or the extraordinary groups I’d be fortunate sufficient to hitch. It’s been an epic journey and actually the privilege of a lifetime.

Last fall, I shared with Satya that I used to be fascinated by stepping again and beginning the following chapter of my life. From that second, we aligned on approaching this transition with intention, making certain stability, and strengthening the inspiration we’ve constructed. Xbox has at all times been greater than a enterprise. It’s a vibrant neighborhood of gamers, creators, and groups who care deeply about what we construct and the way we construct it. And it deserves a considerate, deliberate plan for the highway forward.

Today marks an thrilling new chapter for Microsoft Gaming as Asha Sharma steps into the function of CEO, and I wish to be the primary to welcome her to this unimaginable workforce. Working along with her over the previous a number of months has given me large confidence. She brings real curiosity, readability and a deep dedication to understanding gamers, creators, and the choices that form our future. We know this is a vital second for our followers, companions, and workforce, and we’re dedicated to getting it proper. I’ll stay in an advisory function by the summer season to assist a easy handoff.

I’m additionally grateful for the power of our studios group. Matt Booty and our studios groups proceed to construct an unimaginable portfolio, and I’ve full confidence within the management and inventive momentum throughout our international studios. I wish to congratulate Matt on his promotion to EVP and Chief Content Officer.

As a part of this transition, Sarah Bond has determined to go away Microsoft to start a brand new chapter. Sarah has been instrumental throughout a defining interval for Xbox, shaping our platform technique, increasing Game Pass and cloud gaming, supporting new {hardware} launches, and guiding a number of the most vital moments in our historical past. I’m grateful for her partnership and the affect she’s had, and I want her the easiest in what comes subsequent.

Most of all, to everybody in Microsoft Gaming, I wish to say “thank you”. I’ve discovered a lot from this workforce and neighborhood, grown alongside you, and been regularly impressed by the creativity, braveness, and care you deliver to gamers, creators, and to 1 one other daily.

I’m extremely pleased with what we’ve constructed collectively during the last 25 years, and I’ve full confidence in all of you and within the alternatives forward. I’ll be cheering you on on this subsequent chapter as Xbox’s proudest fan and participant.

Phil