Microsoft Gaming is getting an organisational shakeup, with both Phil Spencer and Sarah Bond leaving their roles.
It’s the end of an era for Microsoft Gaming and the Xbox brand: CEO Phil Spencer is officially retiring, following a whopping 38 years of work at Microsoft. Spencer’s retirement was announced in the midst of a big shakeup at Microsoft Gaming, which also saw Sarah Bond resign from her role at the company.
Asha Sharma, previously president of product in Microsoft’s Core AI division, will replace Spencer as the new head of Microsoft Gaming. Long-time Xbox executive Matt Booty has also been promoted, and will now be Xbox’s chief content officer.
Microsoft Gaming undergoes organisational shakeup as Phil Spencer retires
Phil Spencer, an Xbox boss who has long served as the public face of Microsoft’s gaming brand, is officially retiring. Spencer announced the news on social media earlier today (21 February GMT+8), saying:
“It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been fortunate enough to share with so many of you.”
In his statement, Spencer reflected on starting work at Microsoft all the way back in 1988 as an intern, and thanked the Xbox community while noting that he’ll continue to cheer the teams “pushing this industry forward and playing alongside this incredible community.”
Spencer also noted that Asha Sharma will be replacing him as CEO of Microsoft Gaming, starting from the point of his retirement on 23 February, 2026. Sharma currently serves as the president of Microsoft’s Core AI product, and shared a statement on “AI slop” today, seemingly to alleviate fears that Xbox might be pivoting towards the use of generative AI in gaming:
“As monetisation and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
That isn’t all, however, Sarah Bond, long thought to be Spencer’s eventual successor upon his retirement, is also leaving Microsoft entirely “to begin a new chapter,” according to Spencer himself. Former Xbox Game Studios head Matt Booty has also been promoted to executive vice president and chief content officer at Microsoft Gaming, reporting directly to Asha Sharma.