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Phil Spencer, CEO of Microsoft Gaming, is retiring after a long tenure marked by the creation of Game Pass and major studio acquisitions. Asha Sharma, from Microsoft's CoreAI division, will succeed him as Executive VP and CEO, Microsoft Gaming. Sarah Bond is also leaving, while Matt Booty receives a promotion amidst challenges for the Xbox division.
Phil Spencer retires as Microsoft Gaming CEO after 38 years; Sarah Bond leaves Xbox presidency. Asha Sharma (ex-CoreAI) named new CEO, Matt Booty promoted. No layoffs promised amid leadership pivot.
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
Microsoft Gaming sees a major leadership shift as Phil Spencer departs after 12 years. Asha Sharma, with a diverse background in AI, Instacart, and Meta, takes over as CEO. Her first memo outlines a commitment to "the return of Xbox" and expansion into "new categories and markets" focused on player value.
