Phil Spencer is retiring as Microsoft Gaming CEO, and Sarah Bond is resigning from her position, marking a significant shift in leadership for Xbox. Asha Sharma, currently President of Microsoft’s CoreAI product, will take over as CEO.
Phil Spencer, who joined Microsoft as an intern in 1988 and has been a key figure in Xbox since its inception in 2001, is stepping down. His retirement is effective February 23. Asha Sharma will assume the role of Microsoft Gaming CEO, succeeding Spencer. Matt Booty has been promoted to Chief Content Officer and will work closely with Sharma.
Sarah Bond, previously considered Spencer’s potential successor, is also leaving the company. Her reasons for resigning have not been publicly stated.
In an email to staff, Microsoft CEO Satya Nadella expressed gratitude for Spencer’s leadership, noting his transformative impact on Microsoft Gaming over 12 years. Spencer himself acknowledged the transition in an email to staff, stating it marks “an exciting new chapter” for Microsoft Gaming. He will remain in an advisory role through the summer to ensure a smooth handover.
Phil Spencer emphasized the importance of the Xbox community and the need for a thoughtful plan for the future. He expressed confidence in Asha Sharma’s ability to lead, citing her curiosity, clarity, and commitment to understanding players and creators.
Asha Sharma, who previously held leadership roles at Meta and Instacart, outlined her initial priorities in an email to staff. She stated her first job is to understand what makes Xbox work and protect it, emphasizing a commitment to great games, empowering studios, and investing in iconic franchises. She also highlighted a renewed commitment to console.
Sharma addressed concerns about Xbox’s direction, promising a recommitment to core Xbox fans and developers. She stated that Xbox will celebrate its roots with a renewed commitment to console and will work to regain the trust of gamers. The possibility of a return to exclusive games remains to be seen.
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