Xbox’s Phil Spencer and Sarah Bond are leaving Microsoft, Asha Sharma is the new CEO of Microsoft Gaming

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So, I just saw the news over at IGN – Microsoft is shaking things up at the top with their gaming and Xbox divisions. Basically, they’re making some changes to who’s in charge.

Microsoft is seeing some major leadership changes: Phil Spencer, CEO of Microsoft Gaming, and Sarah Bond, president of Xbox, are both departing. Asha Sharma, currently leading Microsoft’s CoreAI product, will take over as CEO of Microsoft Gaming. Matt Booty, who heads Xbox Game Studios, will become Chief Content Officer for Microsoft Gaming. These changes are significant for the gaming industry as a whole, and will particularly impact major RPG developers like Obsidian, Blizzard, inXile Entertainment, and Bethesda, all of which are part of Xbox Game Studios.

In letters shared with employees, Asha Sharma said the following:

We’re renewing our commitment to the dedicated Xbox fans and players who have supported us for the last 25 years, as well as the talented developers who create the amazing worlds and experiences enjoyed by players everywhere.

Here are the complete statements and letters from Phil Spencer, Satya Nadella, Matt Booty, and Asha Sharma:

Satya Nadella Message

Microsoft has always been involved in gaming. In fact, Flight Simulator came out even before Windows existed! And the technology that powers modern gaming today – like realistic graphics – has roots in Microsoft’s work with DirectX back in the 1990s.

As Xbox celebrates its 25th anniversary, we’re excited about the huge opportunities and new ideas ahead. We now have over 500 million players enjoying Xbox every month, and we’re a leading game publisher on all platforms. We’re committed to continuing to improve our hardware, games, and community for both creators and players.

I strongly believe in the future of gaming and its importance to our company. That’s why I’m thrilled to announce that Asha Sharma will be the new Executive Vice President and CEO of Microsoft Gaming, reporting directly to me. Asha has a proven track record of building successful, large-scale services – both during her two years at Microsoft and in previous roles at Instacart and Meta. She excels at creating and expanding platforms, developing sustainable business models, and managing global operations, all of which will be essential as we position our gaming business for continued growth.

Matt Booty is being promoted to Executive Vice President and Chief Content Officer, and will report to Asha. He’s dedicated his career to gaming and the people who create it. As a leader, he’s helped Microsoft Gaming grow to include almost 40 studios – encompassing Xbox, Bethesda, Activision Blizzard, and King – which are behind popular franchises like Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.

As a huge fan, I’m really excited about the future of gaming! I’ve been hearing that Asha and Matt are taking the reins, and honestly, they’re the perfect team to drive innovation and bring amazing new content to the platform. It’s bittersweet, though, because Phil Spencer is retiring. He’s been incredible for Microsoft Gaming – over 38 years with the company, and 12 years leading the gaming division! He completely transformed how we play, expanded to PC, mobile, and cloud, and grew the business like crazy. Plus, he was behind some huge acquisitions like Activision Blizzard, ZeniMax, and Minecraft, and really fostered a great culture at all the studios. I’ve always been impressed by how much Phil cares about players, creators, and the people he works with. I’m so thankful for his leadership. The good news is he’s staying on to help Asha with the transition, which is fantastic!

Our studios are full of incredibly talented people, and we have a leading global reach. I’m looking forward to seizing future opportunities and shaping what’s next, all while continuing to prioritize what our players and creators love.

Let’s all congratulate Asha and Matt on their new positions, and express our gratitude to Phil for his contributions to Microsoft and the wider industry.

 

Phil Spencer Message

Starting as an intern at Microsoft in June 1988, I never could have predicted the amazing products I’d contribute to, the people we’d work with, or the incredible teams I’d be a part of. It’s been an unforgettable journey, and a true honor.

Last autumn, I told Satya I was considering retirement and what I wanted to do next. We immediately agreed to plan a smooth transition that would keep things stable and build on everything we’ve accomplished. Xbox is more than just a company; it’s a passionate community of gamers, developers, and staff who are dedicated to our work. That’s why it’s so important to have a well-considered plan for the future.

Today is a big day for Microsoft Gaming as Asha Sharma officially becomes our CEO. I’m thrilled to welcome her – I’ve had the pleasure of working with her recently and am incredibly impressed by her curiosity, clear vision, and dedication to our players and creators. We understand this is a significant change for everyone involved, and we’re focused on making the transition as seamless as possible. I’ll be staying on as an advisor through the summer to help with that.

I’m also thankful for how strong our studios are performing. Matt Booty and his team are building an amazing collection of games, and I’m very confident in the leadership and creativity happening at all of our studios around the world. I’d like to congratulate Matt on becoming Executive Vice President and Chief Content Officer.

Sarah Bond has decided to leave Microsoft to pursue a new opportunity. She’s played a key role in a pivotal time for Xbox, helping to define our platform, grow Game Pass and cloud gaming, and launch new hardware. We’re thankful for her contributions and wish her all the best in the future.

I want to express my sincere gratitude to everyone at Microsoft Gaming. I’ve learned a great deal from this team and community, and I’ve been constantly impressed by the creativity, bravery, and dedication everyone shows to players, developers, and each other.

I’m so proud of everything we’ve accomplished together over the past 25 years. I truly believe in all of you and the exciting future ahead, and I’ll be your biggest supporter and player as Xbox moves forward.

Phil

XBL: P3

Asha Sharma Message

Dear team,

Today I begin my role as CEO of Microsoft Gaming.

I feel two things at once: humility and urgency.

We approach this with humility, recognizing the incredible legacy this team has created over many years. But we also feel a sense of urgency, as the gaming world is changing quickly, and we must act decisively and with a clear vision.

I’m joining a team built on the legacy of countless talented artists, engineers, designers, and creators who’ve brought happiness and unforgettable experiences to hundreds of millions of gamers. The dedication to quality here is incredible, and it’s strengthened by Xbox’s core belief that games have the power to connect us and drive innovation in the industry.

We’re grateful to Phil for his guidance, and to all the studios, platforms, and teams who helped create what we have today. We’re now responsible for some of the most cherished stories and characters in the world of entertainment, and we’re bringing gamers and creators together in exciting new ways to build a thriving community.

My first job is simple: understand what makes this work and protect it.

That starts with three commitments.

First, great games.

Our top priority is creating amazing games that players love. This means focusing on memorable characters, compelling stories, innovative gameplay, and overall creative quality. We’ll support our game development teams, invest in well-known franchises, and encourage fresh, new concepts. We’re willing to take chances and expand into new areas where we can truly deliver value for players, always keeping their needs and desires at the heart of everything we do.

I’m pleased to announce Matt Booty’s promotion, recognizing his dedication to game development. He’s a true expert who understands what it takes to create fantastic games, has successfully led teams to deliver critically acclaimed titles, and is highly respected by developers throughout the industry.

Second, the return of Xbox.

We’re renewing our commitment to the dedicated Xbox fans and players who’ve been with us for the last 25 years, as well as the talented developers who create the amazing worlds and experiences enjoyed by players everywhere.

We’re celebrating the history of Xbox and recommitting to its future, beginning with the console that defines us. It’s what connects us to our dedicated players, fans, and the developers who create amazing games for the platform.

Gaming isn’t tied to just one device anymore – it’s available everywhere. Xbox is expanding to PC, mobile, and the cloud, and we want the experience to be smooth, fast, and great for our players. We’re also making it easier for game developers to create games that can be played on any device without sacrificing quality or reach.

Third, future of play.

We are witnessing the reinvention of play.

To succeed now, we’re exploring fresh business approaches and innovative ways to engage our audience. We’ll leverage our existing strengths – beloved teams, characters, and worlds – but we won’t just exploit them for profit. Instead, we’re creating a shared system and tools that will allow developers and players to build and share their own experiences within those worlds.

As we move forward with new technologies like AI and explore different ways to support our creators, we’re committed to quality over quick profits. We believe games are fundamentally art, made by people, and we’ll continue to provide the best tools to help them create amazing experiences.

The next quarter-century will be defined by teams that take risks and create truly innovative things – things others are too hesitant to attempt – and then stick with them until they succeed. We’ve done this successfully before, and I’m committed to helping us do it again. Let’s recapture the bold, unconventional spirit that originally launched Xbox. This means constantly challenging our assumptions, re-evaluating how we work, preserving what’s effective, and fearlessly changing what isn’t.

Thank you for welcoming me into this journey.

Asha

 

Matt Booty Message

I was really thankful to receive Phil’s message. He’s consistently supported game developers and our teams, and I’ve learned a lot from his guidance over the years. His early support has made all of our games better. I also appreciate Satya’s continued dedication to gaming and his ability to see how it fits into the bigger picture for the company.

I’m thrilled to announce Asha as our new CEO. In our initial discussions, it became clear she’s deeply committed to creating fantastic games, understanding that’s key to our success. She’s thoughtful, always seeking a clear understanding, and prioritizes the needs of both players and our development teams. This approach is crucial right now, as the gaming industry is rapidly evolving in terms of player habits, game development processes, and business strategies.

We’re optimistic about the future. This company and its locations have successfully handled challenges for many years, and our success is thanks to teams that are flexible and consistently deliver results. We’re confident because we have a solid base of well-known franchises, promising new ventures, and strong evidence that people want what we’re creating.

I’m dedicated to helping our existing teams and leaders succeed by giving them what they need to do great work. Just to be sure, we aren’t making any changes to how our studios are organized.

Thanks for everything you do for players and for each other.

Matt

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2026-02-21 10:01