Microsoft Gaming is being reorganised under new leadership: Asha Sharma is taking over as CEO, while Phil Spencer is retiring. Matt Booty is becoming the new Chief Content Officer, while Sarah Bond is leaving the company. Nevertheless, Microsoft remains committed to its games division.
Phil Spencer is retiring after 38 years with the company, including 12 years at the helm of Xbox. During his time at the company, he oversaw the acquisitions of Mojang, Bethesda, and Activision Blizzard. He informed Microsoft CEO Satya Nadella of his plans in autumn 2025, allowing time for a structured succession process. Until summer, his role will remain that of an advisor, providing ongoing support.
Asha Sharma is set to become the new Executive Vice President and CEO of Microsoft Gaming. The former Instacart and Meta manager will oversee overall management. She has worked at Microsoft for two years, previously heading product development for the company's CoreAI product. Matt Booty, the current head of Xbox Game Studios, will become Executive Vice President and Chief Content Officer, reporting to Sharma. Under Booty's leadership, Microsoft Gaming has grown to encompass almost 40 studios, including Xbox, Bethesda, Activision Blizzard and King, which are home to popular franchises such as Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo and Candy Crush.
Sarah Bond, the former president of Xbox and the driving force behind the success of Game Pass, cloud gaming and the platform strategy, is leaving the company unexpectedly as part of this restructuring.
Phil Spencer: "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. 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."
"My first job is simple: understand what makes this work and to protect it," writes Sharma. She begins with three commitments: first, great games; second, the return of Xbox; and third, the future of play. "Gaming now lives across devices, not within the limits of any single piece of hardware. As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve. We will break down barriers so developers can build once and reach players everywhere without compromise," she says.
Regarding her previous role as head of Microsoft's CoreAI Product, she explains: "As monetization 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."
