Xbox boss Phil Spencer retires, replaced by Microsoft AI exec, Asha Sharma

In a shocking turn of events, there has been a major executive turnover at Xbox, which will see both Microsoft Gaming CEO Phil Spencer and his heir apparent, Xbox president Sarah Bond, exit the company. In Spencer’s place, CoreAI president Asha Sharma steps in, according to a report from IGN.

Sharma said in an email to Microsoft employees that in her role as CEO of Microsoft Gaming, “We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world.”

Interestingly, Sharma also addressed the rise of monetization and AI in gaming, writing, “As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”

Matt Booty, head of Xbox Game Studios at Microsoft, will now serve as Xbox Chief Content Officer under Sharma. In an email to staff obtained by IGN, he wrote, “Looking forward, I’m excited to partner with Asha as our next CEO. Our first conversations centered on her commitment to making great games and the role that plays in our overall success.”

Spencer’s retirement will begin Monday, Feb. 23. In an email to staff, he revealed he first approached Microsoft CEO Satya Nadella about stepping away last fall. “From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built,” he wrote. “Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.”

The now-former CEO also spoke warmly of outgoing Xbox president Bond, writing, “Sarah has been instrumental during a defining period for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in our history. I’m grateful for her partnership and the impact she’s had, and I wish her the very best in what comes next.”

At the time of publishing, Bond had not publicly commented on resigning from her role.

Spencer first started at Microsoft in 1988 as an intern and has been working with Xbox since its 2001 launch. He was promoted to CEO of Microsoft Gaming in 2022.