Xbox Leadership Shockwave as Phil Spencer Retires, Sarah Bond Steps Away, and Asha Sharma Takes Over Microsoft Gaming
Microsoft Gaming is entering a new era, with Xbox undergoing a top level leadership transition that reshapes both the brand’s executive bench and its near term narrative. Per Microsoft’s official announcement, Phil Spencer is retiring and Asha Sharma has been appointed Executive Vice President and Chief Executive Officer of Microsoft Gaming, reporting directly to Satya Nadella. In the same internal communications, Microsoft confirmed Matt Booty is moving into the role of Executive Vice President and Chief Content Officer under Sharma, while Sarah Bond is departing and will support the handoff as a special advisor.
Spencer’s departure lands Today Monday, 23 2026, ending a 38 year Microsoft run that began when he joined as an intern in 1988. In his note shared by Microsoft, Spencer framed the decision as something he raised last fall, emphasizing a deliberate transition plan and confirming he will remain in an advisory capacity through the summer to support continuity.
It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been…
— Phil Spencer (@XboxP3) February 20, 2026
Sarah Bond’s departure became more detailed once she posted the internal note she sent to Microsoft and Xbox staff on her personal page. In her message, Bond explicitly ties her timing to the commitment she made when the Activision Blizzard acquisition process began in 2022, saying she stayed through what she viewed as a critical period of transition and now believes it is the right moment to take her next step. She also publicly endorses Sharma’s leadership, saying Xbox deserves someone with Sharma’s track record building and scaling platforms, and confirms she will remain a special advisor during the transition.
From a strategic lens, Xbox now has a new chief executive officer arriving from Microsoft’s AI leadership stack, and that is going to be the storyline players, studios, and partners measure first. Sharma’s internal introduction emphasizes “great games” as the first commitment, paired with language about recommitting to core Xbox fans and not flooding the ecosystem with low effort AI content. The market will quickly judge whether that message becomes execution in the pipeline, because Xbox is navigating both platform identity questions and content cadence expectations at the same time.
Today I begin my role as CEO of @Xbox.
— Asha (@asha_shar) February 20, 2026
Here are my three commitments:
1/ GREAT games
2/ Return of @Xbox
3/ Future of playhttps://t.co/6UNrpFm1Ki
IGN’s report on the shakeup adds additional framing around the scope and timing of the change and how Microsoft is positioning the transition externally.
Bond’s LinkedIn note also quietly answers a question that Microsoft’s initial messaging left open: why she chose to step away now and what she believes she accomplished during the integration period. It also raises a new question about what she does next, because her departure reads less like an exit due to crisis and more like an intentional handoff after a defined mission. In a year where the industry is rebalancing around cost discipline, platform consolidation, and AI driven tooling, her next role will be watched closely, whether inside games or adjacent to the broader tech ecosystem.
Do you see Asha Sharma’s appointment as the reset Xbox needs to refocus on great games and core platform identity, or does moving an AI executive into the top gaming seat feel like a risk to creative direction?
