Microsoft has officially appointed Asha Sharma as the Executive Vice President and CEO of Microsoft Gaming, marking a significant leadership transition for the Xbox brand as longtime head Phil Spencer announces his retirement. Reporting directly to Chairman and CEO Satya Nadella, Sharma—an Indian-origin executive with a background in AI and consumer platforms—takes the helm at a pivotal moment as the division seeks to integrate recent massive acquisitions like Activision Blizzard while navigating a shifting landscape of cloud and mobile gaming. In his message to employees, Nadella praised Sharma’s “deep experience in building and growing platforms,” noting her previous roles at Meta and Instacart as instrumental to her new mission of expanding Xbox’s reach. Sharma, who recently led Microsoft’s CoreAI product development, has pledged to return to the “renegade spirit” that originally built Xbox, promising to prioritize “great games” and “the return of the console” over short-term monetization.
This strategic reshuffle comes as Phil Spencer steps back after nearly 40 years at Microsoft, though he will remain in an advisory capacity through the summer of 2026 to ensure a smooth handover. Alongside Sharma’s appointment, Microsoft confirmed that Xbox President Sarah Bond will depart to pursue new opportunities, while Matt Booty has been promoted to Chief Content Officer, overseeing the company’s expansive portfolio of nearly 40 internal studios. Sharma’s leadership begins during a challenging period for the industry, characterized by slowing revenue growth and rising hardware costs. However, her vision focuses on a “human-centric” approach to technology, explicitly vowing to avoid flooding the ecosystem with “soulless AI slop” and instead using innovation to empower creators. As the brand approaches its 25th anniversary, the industry will be watching closely to see how this new leadership team balances Microsoft’s aggressive AI agenda with the traditional console experience valued by its 500 million monthly active users.