Big shakeup in the video game world: Phil Spencer is retiring, Sarah Bond is resigning, and a new person is calling the shots at Xbox.
IGN is exclusively reporting that Phil Spencer, who joined Microsoft as an intern in 1988 and has been with Xbox since its launch in 2001, with the arrival of its first console, is stepping down as Microsoft Gaming CEO.
Sources close to the matter revealed to the website that Spencer’s retirement is effective on Monday, February 23.
Taking Spencer’s spot as Microsoft Gaming CEO will be Asha Sharma, President of Microsoft’s CoreAI product.
Also out is Sarah Bond, who was also considered Spencer’s heir apparent; she has yet to speak on the sudden news.
Matt Booty will be staying on and has been promoted to Chief Content Officer, and will work closely with Sharma, according to IGN.
In an email sent to staff, Microsoft CEO Satya Nadella said on Spencer’s retirement, “I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.”
Phil Spencer Says His Resignation Marks “A New Chapter For Microsoft Gaming”
In his email to staff, Phil Spencer wrote: “Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. 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.
“Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity, and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff.”
Asha Sharma Says She Will Need To Understand What Makes Xbox Work
Sharma, a former VP of Product and Engineering at Meta and former Instacart COO who is also a board member of The Home Depot, didn’t give Xbox fans much confidence in the gaming company’s future by stating in her email to staff that she needs to “understand” what makes the company work.
“My first job is simple: understand what makes this work and protect it. That starts with three commitments. First, great games. Everything begins here. We must have great games beloved by players before we do anything. Unforgettable characters, stories that make us feel, innovative game play, and creative excellence.”
Sharma continues, “We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most. I promoted Matt Booty in honor of this commitment. He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry.”
Sharma Promises A Recommitment To Console
In the same breath, Sharma also said the company would work hard to win back the trust of Xbox gamers lost due to the failure of the Xbox Series S and X and the loss of exclusive games with the company becoming a third-party publisher, by recommitting to console.
“Second, the return of Xbox. 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,” Sharma said. “We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.”
Wow.
So does that mean that Xbox will go back to having exclusives? Who knows, only time will tell. But this is a very significant move in the video game world.
We shall see if this helps bring Xbox back.
You can see more reactions to Phil Spencer’s retirement and Sarah Bond’s resignation below.
