A massive structural shift is hitting the top ranks of Xbox. It is officially the end of an era as Microsoft Gaming CEO Phil Spencer retires effective February 23, wrapping up an incredible 38-year run at the company. In a surprising secondary move,
Xbox president and chief operating officer Sarah Bond has also resigned, clearing the deck for an entirely new leadership paradigm.
Stepping into the role of Microsoft Gaming CEO is Asha Sharma. Sharma transitions from her recent position as president of Microsoft’s CoreAI product, bringing significant executive experience from Meta and Instacart. Her opening memo to the staff pulled no punches. She emphasized a strict return to the roots of Xbox and a renewed focus on the core console experience. She also made a pointed commitment to human-crafted games, assuring developers and players alike that Microsoft will avoid flooding the ecosystem with what she explicitly called “soulless AI slop.”
To back up this renewed focus on software, Matt Booty is stepping up as Executive Vice President and Chief Content Officer. Booty will report directly to Sharma and oversee the massive stable of developers under the Microsoft umbrella. He was quick to reassure his teams that no organizational changes are currently planned for the studios, keeping his focus entirely on supporting developers across Xbox, Bethesda, and Activision Blizzard.
Microsoft CEO Satya Nadella publicly thanked Spencer for his instrumental role in tripling the size of the gaming business and spearheading historic acquisitions like ZeniMax and Activision Blizzard. Spencer himself noted that this transition has been in the works since last fall. He will remain on board in an advisory capacity through the summer to ensure Sharma and Booty have a seamless handoff.
This is a historic changing of the guard for the brand. With a new executive team taking the controller, the next chapter of Xbox is officially underway.
