There's been a big shake up at Xbox.
Microsoft’s Xbox division will be a different operation from next week, with Xbox head Phil Spencer announcing his retirement effective this coming Monday. Additionally, Xbox president Sarah Bond has resigned from her position, while Xbox Game Studios head Matt Booty will take on the role of Chief Content Officer as a result of the shake-up. Stepping into Xbox’s top job is Asha Sharma, the current president of Microsoft’s CoreAI.
Spencer and Bond are out
“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,” Spencer said in an email to staff obtained by IGN. “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.”
While IGN has emails from Microsoft head Satya Nadella, Spencer, Booty, and Sharma, it doesn’t have a communication from former Xbox president Sarah Booty.
“As part of this transition, Sarah Bond has decided to leave Microsoft to begin a new chapter,” Spencer said of his colleague. “Sarah has been instrumental during a defining period for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in our history. I’m grateful for her partnership and the impact she’s had, and I wish her the very best in what comes next.”
“Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning,” Nadella said of the retiring executive. “I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it. He expanded our reach across PC, mobile, and cloud; nearly tripled the size of the business; helped shape our strategy through the acquisitions of Activision Blizzard, ZeniMax, and Minecraft; and strengthened our culture across our studios and platforms. I’ve long admired Phil’s unwavering commitment to players, creators, and his team, and I am personally grateful for his leadership and counsel. He will continue working closely with Asha to ensure a smooth transition.”
Spencer took on the top role at Xbox back in 2014, tasked with a giant course correction for the brand following its disastrous Xbox One launch. He held the position when Xbox decoupled Kinect from the Xbox One, launched the Xbox Series S and Xbox Series X, introduced Xbox Play Anywhere, and of course, the Xbox Game Pass subscription program.
An AI executive is in
CoreAI executive Asha Sharma will be in charge of Xbox starting next week.
“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,” Nadella said of Sharma. “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.
“Matt Booty will become Executive Vice President and Chief Content Officer, reporting to Asha,” Nadella continued. “Matt’s career reflects a lifelong commitment to games and to the people who make them. Under his leadership, Microsoft Gaming has grown to span nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King.”
In a letter to staff, Sharma detailed “three commitments” that included “great games,” “the return of Xbox,” and “future of play.”
“As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop,” Sharma wrote. “Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
“Looking forward, I’m excited to partner with Asha as our next CEO,” said new Xbox Chief Content Officer, Matt Booty. “Our first conversations centered on her commitment to making great games and the role that plays in our overall success. She asks questions, pushes for clarity, and wants our choices grounded in player and developer needs. That mindset matters as the industry around us is changing quickly: how players engage, how games are made, and how business models and platforms evolve.”
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