On February 20, 2026, Microsoft Gaming CEO Phil Spencer announced he is retiring after nearly 40 years with the company, according to a Variety report. Spencer wrote to employees that when he started at Microsoft as an intern in June 1988 he could not have imagined the products, customers, and teams he would work with. In a memo included in his message he said, “It’s been an epic ride and truly the privilege of a lifetime.” Spencer also wrote that after 38 years at Microsoft the moment has arrived for him to step away.
Unexpectedly, Xbox president Sarah Bond, who joined the Xbox division in 2017 and had been widely seen as the natural successor, resigned from Microsoft instead of taking the top role. Microsoft is promoting Matt Booty, the head of Microsoft Studios, to chief content officer.
Microsoft named Asha Sharma as the new head of Microsoft Gaming. Sharma joined Microsoft in 2024 as president of the CoreAI product, and her prior roles include chief operating officer at Instacart and vice president of product and engineering at Meta. Her LinkedIn profile is available here, and Microsoft published its announcement on its blog here.
Spencer said he has been working with Sharma for “several months” and that he has “tremendous confidence” in her ability to lead Microsoft Gaming. He added that he will “remain in an advisory role through the summer to support a smooth handoff.” A public tweet tied to his messages is available on X.
Sharma acknowledged her background in AI while promising that Xbox “will not chase short-term efficiency or flood our ecosystem with soulless AI slop.” She wrote that the next 25 years belong to teams willing to build things that surprise people and that she wants to return to the renegade spirit that built Xbox, which means questioning processes, protecting what works, and changing what does not.
Spencer did not outline concrete post-Xbox plans beyond saying he intends to keep “cheering on the teams pushing this industry forward and playing alongside this incredible community.” Earlier public comments from Spencer about Xbox strategy and adaptations can be read in related coverage of more Xbox game adaptations.
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