Key Takeaways
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- Phil Spencer, former head of Xbox gaming division at Microsoft, is retiring after nearly 40 years with the company and over 12 years leading Xbox. He will serve as an advisor until summer to ensure a smooth transition.
- Asha Sharma, previously in charge of Microsofts AI product division, has been appointed as the new CEO of Microsoft Gaming. She will report directly to Satya Nadella and oversee all Xbox game studios.
- Matt Booty, head of Xbox Game Studios, has been promoted to Executive Vice President and Chief Content Officer, expanding his role to include oversight of all Xbox game studios and collaboration with Sharma on content strategy.
- Under Sharmas leadership, Microsoft Gaming plans to prioritize the development of high-quality games, focus on cross-platform expansion, and deliver seamless, instant experiences across all gaming platforms (console, PC, mobile, cloud). The goal is to allow developers to create once and reach players anywhere without compromises.
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After nearly 40 years at Microsoft, Phil Spencer is retiring, ending his almost 12-year tenure as head of the Xbox gaming division amid significant shifts in the gaming landscape. Spencer, who began his career as an intern in 1988, rose to leadership, directing Microsoft’s acquisitions of Activision Blizzard, Zenimax, and Minecraft. In a company email, Spencer announced his departure, explaining that he had discussed transitioning to new opportunities with senior leadership. He will serve as an advisor until the summer to ensure a smooth handover. Alongside Spencer, Sarah Bond, who had led Xbox since 2017, has also stepped down during Microsoft’s restructuring. Named as the new CEO of Microsoft Gaming is Asha Sharma, formerly in charge of Microsoft’s AI product division after joining from Meta and Instacart. Sharma will report directly to Satya Nadella. To support this transition, Matt Booty, head of Xbox Game Studios, has been promoted to Executive Vice President and Chief Content Officer, expanding his role to oversee all Xbox game studios and collaborate with Sharma on content strategy.
Spencer signaled his intentions to Nadella last fall. “Since then, we’ve been working together on this transition, making sure everything stays stable and strong, just like the foundation we built,” he wrote. “Xbox is more than just a business – it’s a big community of players, creators, and teams who really care about what we do and how we do it. We wanted to make sure we planned carefully for the future.” “Today marks a new chapter for Microsoft Gaming with Asha Sharma taking over as CEO,” Spencer continued. “I’m excited to welcome her to our amazing team. Working with her these past months has given me confidence that she’s the right person for this role. She brings a real curiosity, clarity, and deep commitment to understanding players, creators, and decisions that shape our future. We know this is an important moment for everyone involved, so we’re committed to getting it just right. I’ll stick around in a consultative role over the summer to make sure everything goes smoothly.” Assuming leadership, Sharma addressed the games team, pledging to prioritize the development of high-quality games. Booty’s promotion reinforces this commitment by placing content strategy and studio oversight under his direction.
A New Era for Microsoft Gaming: Sharma’s Vision for Cross-Platform Expansion and Dev Commitment
Sharma outlined her vision: “We’re gonna double down on our Xbox fans and players, who’ve stuck with us for the past 25 years. We’re not forgetting about the devs either, they’re the ones crafting those massive worlds that keep us all glued to our screens. We’re paying homage to where we came from, starting with the console that put Xbox on the map. It’s what ties us to our players and developers.” Recognizing the industry’s evolution, Sharma added, “Games aren’t just for consoles anymore, they’re everywhere – PC, mobile, cloud. So, Xbox needs to step up its game and deliver seamless, instant experiences across all these platforms. We’re busting down barriers so devs can create once and reach players anywhere, no compromises.” As Sharma steps into her new role, the future of Microsoft Gaming will hinge on her leadership and strategic vision.
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