A new shake-up is set to affect Microsoft’s gaming division in the coming days. According to IGN, two iconic figures at Xbox are leaving the company.
Phil Spencer, the current president of Microsoft Gaming, will retire on Monday, February 23, 2026. He will be replaced by Asha Sharma (photo at the bottom of this article), who is currently president of the American firm’s CoreAI project. This project is actually a division created in 2024 to develop consumer AI products such as Copilot.
In addition, the current president of Xbox, Sarah Bond, who was tipped to succeed Spencer, has reportedly resigned. Matt Booty, head of Xbox Game Studios, has been promoted to director of content alongside Sharma.
Phil Spencer sent an email to employees this week.
“Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built.
Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.
oday 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. 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.”
Asha Sharma also sent an email introducing herself to the teams. In this lengthy statement, the new president of Microsoft Gaming expressed her desire to focus her strategy on three commitments. She wants to emphasize the creation of “great games” by empowering the company’s studios and supporting innovative ideas. All while taking risks.
The second point is to celebrate the origins of Xbox by renewing a commitment to early fans and players, as well as developers. Finally, the ambition is to look to the future by designing new business models and other ways of playing. The goal is to design “a shared platform and tools that empower developers and players to create and share their own stories”.
