Xbox Chief Phil Spencer Retires; Asha Sharma Named New Gaming CEO

Redmond, WA – February 20, 2026 – Microsoft's gaming division is undergoing a significant leadership transition as Phil Spencer, the long-serving head of Xbox, retires after 38 years with the company. Asha Sharma, previously President of Microsoft's CoreAI product organization, has been appointed as the new Executive Vice President and CEO of Microsoft Gaming. This change also sees Xbox President Sarah Bond departing and Matt Booty promoted to Executive Vice President and Chief Content Officer.

Key Takeaways

• Phil Spencer is retiring after 38 years at Microsoft, including 12 years leading the Xbox division.
• Asha Sharma, with extensive experience in consumer platforms and operations, succeeds Spencer as CEO of Microsoft Gaming.
• Sarah Bond, formerly Xbox President, will also be leaving the company following a transition period.
• Matt Booty has been promoted to EVP and Chief Content Officer, now overseeing Microsoft's nearly 40 game studios.
• This leadership change occurs amidst a recent decline in Xbox gaming revenue, presenting a new challenge for the incoming executives.

What Happened

Phil Spencer, a pivotal figure in reshaping Xbox through significant acquisitions and a strategic focus on cloud gaming, announced his retirement from Microsoft. Spencer communicated his decision to Microsoft CEO Satya Nadella last fall, leading to a planned transition period. Asha Sharma, who joined Microsoft two years ago after serving as COO at Instacart and a VP at Meta, will now lead Microsoft Gaming. The company also confirmed the departure of Sarah Bond, a prominent Xbox executive, and the promotion of Matt Booty to a key content leadership role. The announcement, originally slated for next week, was accelerated after gaming publication IGN reported the news based on internal sources.

Why It Matters

This leadership overhaul marks a critical juncture for Microsoft Gaming. Phil Spencer's nearly four-decade tenure saw the Xbox business nearly triple in size, driven by landmark acquisitions like Activision Blizzard, ZeniMax, and Minecraft, alongside a strong push into PC, mobile, and cloud gaming. His departure signals the end of an era defined by aggressive growth and strategic expansion. The appointment of Asha Sharma, who lacks prior video-game industry experience but brings deep expertise in scaling consumer platforms, suggests a renewed focus on operational excellence and platform growth. Her partnership with veteran Matt Booty, who will oversee the vast content portfolio, aims to combine consumer product leadership with gaming depth. This transition comes as Xbox faces headwinds, with gaming revenue declining in the most recent quarter, placing immediate pressure on the new leadership to stabilize and innovate.

Key Details / Context

Phil Spencer's legacy at Microsoft spans 38 years, with 12 years at the helm of Xbox. During his leadership, he was instrumental in expanding Xbox's reach and strengthening its culture. Satya Nadella praised Spencer's commitment to players and creators. Spencer will remain in an advisory capacity through the summer to ensure a smooth handoff.

Asha Sharma's professional background is rooted in the Seattle startup community, with significant roles at Instacart and Meta. At Microsoft, she has been leading the CoreAI product organization. In her initial message to the gaming team, Sharma emphasized a commitment to