Phil Spencer Is Retiring, Xbox President Sarah Bond Is Leaving, And Microsoft’s CoreAI Head Is New CEO Of Microsoft Gaming

Microsoft Gaming CEO Phil Spencer is retiring, and Xbox president Sarah Bond, lengthy thought-about the particular person to sooner or later maintain Spencer’s job, has resigned from the corporate, as reported by IGN and later confirmed by an official Microsoft announcement. The president of Microsoft’s CoreAI product, Asha Sharma, will now additionally work in Spencer’s former place as the brand new Microsoft Gaming CEO. As a part of this huge shake-up, Xbox Game Studios head Matt Booty has been promoted to Chief Content Officer and can work carefully with Sharma inside Microsoft Gaming. 

Sharma joined Microsoft in 2024 as a part of the corporate’s AI and software program growth group, and labored because the Chief Operating Officer of Instacart and because the Vice President of Product at Meta previous to that. It’s essential to notice that Microsoft has an AI division and CoreAI division – the previous is extra targeted on AI analysis and growth (assume Copilot), whereas the latter is an AI-first platform for instruments, app stacks, and extra. As the brand new Microsoft Gaming CEO, Sharma will oversee an enormous array of studios and video games starting from Activision’s Call of Duty umbrella, Blizzard Entertainment’s Overwatch, World of Warcraft, and Diablo groups, King’s cell Candy Crush empire, Mojang and that group’s ongoing work on Minecraft, and naturally, the core Xbox Game Studios, which incorporates Fable and Forza Horizon developer Playground Games, Halo: Campaign Evolved’s Halo Studios, Obisidian Entertainment, which launched The Outer Worlds 2 final October, and extra. 

Spencer’s departure comes after serving because the Head of Xbox (and later Microsoft Gaming CEO) for greater than a decade, becoming a member of the group in 2014, although he had labored at Microsoft since 1988, starting his profession there as an intern. Spencer joined at a tense time for Xbox in 2014, roughly 5 months after Microsoft launched the Xbox One, which by all accounts, launched in a tough state because of the non-optional inclusion of a refreshed Kinect, an emphasis on residence and TV leisure (over gaming, in some situations), and DRM-related controversies earlier than the console’s launch; Xbox reversed course on its DRM necessities previous to the launch of the Xbox One. 

 

As Head of Xbox, Spencer shortly started working garnering good will for the once-favorite console of many avid gamers with strikes like backward compatibility; an emphasis on Xbox Game Pass with its regular stream of day one releases; explosive E3 conferences that featured the likes of Keanu Reeves; numerous acquisitions similar to Microsoft’s $69 billion buy of Activision Blizzard and the corporate’s acquisition of Fallout and Elder Scrolls maker Bethesda for $7.5 billion, amongst others (although arguably, these acquisitions did not precisely present good will for the model); and the Xbox Play Anywhere initiative as a part of its Xbox Series X/S console technology, which built-in Microsoft’s gaming enterprise extra carefully with PC. Under Spencer’s management as Microsoft Gaming CEO, we additionally noticed Xbox-exclusive titles launch on PlayStation 5, like Sea of Thieves, Indiana Jones and The Great Circle, Forza Horizon 5, and even upcoming video games like Halo: Campaign Evolved. 

Bond, who was promoted to President of Xbox in 2022 alongside Spencer’s promotion to Microsoft Gaming CEO, has labored in Xbox since 2017. She started her profession at Xbox because the Corporate Vice President of Business Development and Partnerships, was then promoted to Corporate Vice President of Game Creator Experience and Ecosystem, and eventually, turned President of Xbox.  

In 2022, when Bond was promoted to President of Xbox and Spencer to Microsoft Gaming CEO, Matt Booty was named President of Game Content and Studios, a place that put him in shut communication with the greater than 40 studios underneath the Xbox Game Studios umbrella. That’s doubtless the rationale his new place as Chief Content Officer will reportedly have him working carefully with Sharma, who doubtless doesn’t have as wide-ranging or as knowledgeable an strategy to Xbox’s secure of studios and video games comparatively. 

 

Xbox has had a busy 2026 thus far, even outdoors of this management shake-up. The firm held a Developer Direct showcase final month, the place it revealed launch dates and gameplay for upcoming first-party titles like Fable and Forza Horizon 6, together with the debut of Double Fine Productions’ Kiln and the launch window for Game Freak’s Beast of Reincarnation. Earlier this week, on February 17, Xbox’s first-person fantasy RPG Avowed launched on PS5 after roughly a yr of Xbox and PC exclusivity. Looking forward to the remainder of 2026, Xbox is launching Forza Horizon 6 on Xbox Series X/S and PC on May 19 (and PS5 later this yr), Kiln this Spring, its extremely anticipated Fable reboot in Autumn, and Halo: Campaign Evolved someday this yr. Plus, Xbox, like PlayStation 5 and PC, will act as a third-party console for enormous releases like Grand Theft Auto VI in November and extra. 

Notably, Microsoft is celebrating 25 years of Xbox in 2026; this shake-up is an fascinating wrinkle in what was speculated to be a banner yr for the corporate. 

Transcriptions of the emails Spencer, Booty, Sharma, and Nadella despatched to workers had been posted publicly by Microsoft and could be learn beneath:

Phil Spencer’s Email To Microsoft Staff

Retiring Microsoft Gaming CEO

When I walked via 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 clients we’d serve, or the extraordinary groups I’d be fortunate sufficient to affix. It’s been an epic experience and actually the privilege of a lifetime.

Last fall, I shared with Satya that I used to be enthusiastic about 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 muse we’ve constructed. Xbox has all the time been greater than a enterprise. It’s a vibrant group 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 group. Working together with her over the previous a number of months has given me super confidence. She brings real curiosity, readability and a deep dedication to understanding gamers, creators, and the selections that form our future. We know this is a vital second for our followers, companions, and group, and we’re dedicated to getting it proper. I’ll stay in an advisory function via the summer time to assist a clean handoff.

I’m additionally grateful for the energy 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 artistic 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 depart 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 few 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 realized a lot from this group and group, grown alongside you, and been frequently impressed by the creativity, braveness, and care you convey to gamers, creators, and to 1 one other on daily basis.

I’m extremely pleased with what we’ve constructed collectively over the past 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.

Matt Booty’s Email To Microsoft Staff

Microsoft Chief Content Officer Matt Booty

I learn Phil’s observe with a lot gratitude. He has been a gentle champion for sport creators and our studio groups, and I’ve realized a lot from his management over time. All our video games have benefited from his foundational assist. I’m additionally grateful to Satya for his ongoing dedication to gaming and holding a imaginative and prescient of the way it can join again to the bigger firm.

Looking ahead, I’m excited to associate with Asha as our subsequent CEO. Our first conversations centered on her dedication to creating nice video games and the function that performs in our total success. She asks questions, pushes for readability, and desires our decisions grounded in participant and developer wants. That mindset issues because the trade round us is altering shortly: how gamers interact, how video games are made, and the way enterprise fashions and platforms evolve.

We have good causes to imagine in what’s forward. This group and its franchises have navigated change for many years, and our energy comes from groups who know the way to adapt and maintain delivering. That confidence is grounded in a robust pipeline of established franchises, new bets we imagine in, and clear participant demand for what we’re constructing.

My focus is on supporting the groups and leaders we now have in place and creating the situations for them to do their greatest work. To be clear, there are not any organizational adjustments underway for our studios.

Thanks for the whole lot you do for gamers and for one another.

Asha Sharma’s Email To Microsoft Staff

Microsoft Gaming CEO Asha Sharma

Today I start my function as CEO of Microsoft Gaming.

I really feel two issues directly: humility and urgency. Humility as a result of this group has constructed one thing extraordinary over a long time. Urgency as a result of gaming is in a interval of speedy change, and we have to transfer with readability and conviction.

I’m entering into work formed by generations of artists, engineers, designers, writers, musicians, operators and extra who create worlds which have introduced pleasure and deep private that means to tons of of thousands and thousands of gamers. The stage of craft right here is phenomenal, and it’s amplified by Xbox, which was based within the perception that the ability of video games join individuals and push the trade ahead.

Thank you to Phil for his management, and to each studio, platform, and operations group that constructed this basis. We are stewards of a few of the most liked tales and characters in leisure and produce gamers and creators collectively across the enjoyable and group of gaming in fully new methods.

My first job is straightforward: perceive what makes this work and shield it. That begins with three commitments.

First, nice video games.

Everything begins right here. We will need to have nice video games beloved by gamers earlier than we do something. Unforgettable characters, tales that make us really feel, progressive sport play, and artistic excellence. We will empower our studios, spend money on iconic franchises, and again daring new concepts. We will take dangers. We will enter new classes and markets the place we are able to add actual worth, grounded in what gamers care about most. I promoted Matt Booty in honor of this dedication. He understands the craft and the challenges of constructing nice video games, has led groups that ship award-winning work, and has earned the belief of sport builders throughout the trade.

Second, the return of Xbox.

We will recommit to our core Xbox followers and gamers, those that have invested with us for the previous 25 years, and to the builders who construct the expansive universes and experiences which might be embraced by gamers internationally. We will have fun our roots with a renewed dedication to Xbox beginning with console which has formed who we’re. It connects us to the gamers and followers who spend money on Xbox, and to the builders who construct bold experiences for it. Gaming now lives throughout units, not inside the limits of any single piece of {hardware}. As we develop throughout PC, cell, and cloud, Xbox ought to really feel seamless, prompt, and worthy of the communities we serve. We will break down obstacles so builders can construct as soon as and attain gamers in all places with out compromise.

Third, way forward for play.

We are witnessing the reinvention of play. To meet the second, we are going to invent new enterprise fashions and new methods to play by leaning into what we have already got: iconic groups, characters, and worlds that individuals love. But we is not going to deal with these worlds as static IP to exploit and monetize. We will construct a shared platform and instruments that empower builders and gamers to create and share their very own tales. As monetization and AI evolve and affect this future, we is not going to chase short-term effectivity or flood our ecosystem with soulless AI slop. Games are and all the time might be artwork, crafted by people, and created with probably the most progressive expertise offered by us.

The subsequent 25 years belong to the groups who dare to construct one thing stunning, one thing nobody else is prepared to attempt, and have the persistence to see it via. We have completed this earlier than, and I’m right here to assist us do it once more. I wish to return to the renegade spirit that constructed Xbox within the first place. It would require us to relentlessly query the whole lot, revisit processes, shield what works, and be courageous sufficient to alter what doesn’t.

Thank you for welcoming me into this journey.

Satya Nadella’s Email To Microsoft Staff

Microsoft CEO Satya Nadella

Gaming has been a part of Microsoft from the beginning. Flight Simulator shipped earlier than Windows, and you’ll virtually ray‑hint a line from DirectX within the ’90s to the accelerated‑compute period we’re in at the moment.

As we have fun Xbox’s twenty fifth yr, the chance and innovation agenda in entrance of us is expansive. Today we attain over 500 million month-to-month lively customers, are a high writer throughout all platforms, and proceed to innovate throughout gaming {hardware}, content material and group, in service of creators and gamers in all places.

I’m lengthy on gaming and its function on the heart of our shopper ambition, and as we glance forward, I’m excited to share that Asha Sharma will develop into Executive Vice President and CEO, Microsoft Gaming, reporting to me. Over the final two years at Microsoft, and beforehand as Chief Operating Officer at Instacart and a Vice President at Meta, Asha has helped construct and scale providers that attain billions of individuals and assist thriving shopper and developer ecosystems. She brings deep expertise constructing and rising platforms, aligning enterprise fashions to long-term worth, and working at international scale, which might be essential in main our gaming enterprise into its subsequent period of development.

Matt Booty will develop into Executive Vice President and Chief Content Officer, reporting to Asha. Matt’s profession displays a lifelong dedication to video games and to the individuals who make them. Under his management, Microsoft Gaming has grown to span almost 40 studios throughout Xbox, Bethesda, Activision Blizzard, and King, that are residence to beloved franchises together with Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.

Together, Asha and Matt have the precise mixture of shopper product management and gaming depth to push our platform innovation and content material pipeline ahead. Last yr, Phil Spencer made the choice to retire from the corporate, and since then we’ve been speaking about succession planning. I wish to thank Phil for his extraordinary management and partnership. Over 38 years at Microsoft, together with 12 years main Gaming, Phil helped rework what we do and the way we do it. He expanded our attain throughout PC, cell, and cloud; almost tripled the scale of the enterprise; helped form our technique via the acquisitions of Activision Blizzard, ZeniMax, and Minecraft; and strengthened our tradition throughout our studios and platforms. I’ve lengthy admired Phil’s unwavering dedication to gamers, creators, and his group, and I’m personally grateful for his management and counsel. He will proceed working carefully with Asha to make sure a clean transition.

We have extraordinary inventive expertise throughout our studios and a world platform that’s second to none. I’m excited for a way we are going to seize the chance forward and outline what comes subsequent, whereas staying grounded in what gamers and creators worth.

Please be part of me in congratulating Asha and Matt on their new roles, and in thanking Phil for the whole lot he has completed for Microsoft and for our trade.

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[Source: IGN]