Key Takeaways
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- Phil Spencer, who led Xbox since 2014 and played a crucial role in its transformation into a diversified gaming ecosystem, is stepping down as CEO, effective February 23, 2026. He will remain in an advisory role until the summer to ensure a smooth transition.
- Asha Sharma, formerly an executive at Meta and COO of Instacart, has taken over as the new CEO of Microsoft Gaming. She plans to prioritize creating impactful games, maintaining Xboxs identity regarding consoles, and ensuring that automation and AI do not stifle creativity.
- Matt Booty was promoted to Chief Content Officer. He has overseen the growth of Microsoft Gaming to nearly 40 studios and has supported the development of major franchises like Halo, Call of Duty, World of Warcraft, among others.
- Microsoft significantly expanded its gaming division through strategic acquisitions, including ZeniMax Media in 2020 and Activision Blizzard in 2022 for $69 billion, making Xbox one of the worlds largest game publishers. The upcoming 2026 lineup includes highly anticipated titles like Fable, Gears of War: E-Day, and Forza Horizon 6.
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Just ahead of Xbox’s 25th-anniversary celebration, Microsoft announced significant leadership changes. After 38 years with the company, Phil Spencer concluded his tenure, which included leading Xbox since 2014 and spearheading its evolution into a diversified gaming ecosystem. Satya Nadella, CEO of Microsoft, recognized Spencer’s instrumental role in this transformation away from console-centric and genre-exclusive models. Effective February 23, 2026, Asha Sharma assumed the role of CEO of Microsoft Gaming, and Matt Booty was promoted to Chief Content Officer. Spencer will remain in an advisory role until the summer to ensure a smooth transition. Sarah Bond has also decided to leave Microsoft to pursue a new chapter in her career. Spencer stepped in to lead Xbox during a challenging period following the Xbox One launch in 2013. His initial steps included discontinuing the Kinect to reduce the console’s price and align it with the PlayStation 4. Other key initiatives during his leadership included the introduction of backward compatibility, improved accessibility features, and the launch of Xbox Play Anywhere. Perhaps his most impactful contribution was the creation of Xbox Game Pass.
Under Spencer’s leadership, Microsoft significantly expanded its gaming division through strategic acquisitions. In 2020, the company acquired ZeniMax Media, followed by the acquisition of Activision Blizzard in 2022 for $69 billion. These acquisitions made Xbox one of the world’s largest game publishers, owning major franchises such as Halo, The Elder Scrolls, Call of Duty, and World of Warcraft. Asha Sharma, formerly an executive at Meta and COO of Instacart, now takes the helm as CEO of Microsoft Gaming. Sharma shared her enthusiasm for her new role: “Xbox has shown us all how games bring people together, and that’s something worth fighting for. Let’s keep raising the bar, yeah!” She plans to prioritize the creation of impactful games, maintain Xbox’s identity—particularly regarding consoles—and ensure that automation and AI do not stifle creativity.
Matt Booty’s promotion to Executive Vice President and Chief Content Officer reflects his extensive background in the gaming industry. Booty added, “My main goal is to support these teams and create an environment where they can thrive.” He has overseen the growth of Microsoft Gaming to nearly 40 studios, including Xbox, Bethesda Softworks, Activision Blizzard, and King, and has supported the development of major franchises such as Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush Saga, and Fallout. Building on these foundations, recent game releases like S.T.A.L.K.E.R. 2 and Microsoft Flight Simulator 2024 have been well-received, despite earlier challenges including fluctuating sales figures and adjustments to Game Pass pricing. The upcoming 2026 lineup includes highly anticipated titles like Fable, Gears of War: E-Day, and Forza Horizon 6. “We’re now reaching over half a billion monthly active users and we’re making waves across all platforms as a major publisher. Plus, we’re always innovating in hardware, content, and communities, connecting creators and players worldwide,” Nadella stated. Sharma’s primary goals include creating memorable games, reconnecting with fans and developers, and expanding the Xbox experience across PC, mobile, and cloud platforms.
A New Chapter in Microsoft Gaming’s 25th Year with Leadership Shift
These leadership changes signal a new chapter for Microsoft Gaming as it celebrates Xbox’s 25th anniversary and looks to the future.
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