Microsoft Gaming is getting a complete leadership overhaul. Phil Spencer is retiring after more than a decade leading Xbox. Sarah Bond is leaving the company. And Microsoft is handing the keys to Asha Sharma, an executive from its CoreAI division.
The changes are happening fast. IGN reports the transition is already underway, with Spencer’s exit coming after months of planning that began last fall.
Spencer built modern Xbox as we know it. He championed Game Pass and pushed Xbox games onto PC. He orchestrated massive acquisitions including Bethesda and the record-breaking Activision Blizzard deal that closed last year.
Sarah Bond’s departure is equally significant. She served as Xbox President and was widely seen as Spencer’s heir apparent. Her background immediately kicked off concerns about AI flooding into Xbox products and game development.
But Sharma addressed those fears head-on in an internal message. She promised “great games” as the first priority and made an explicit commitment about AI: “We will not chase short-term efficiency or flood our ecosystem with soulless AI slop.” She emphasized that games “are art” created by humans.
Her message also pledged “a renewed commitment to Xbox starting with console.” That line matters because Xbox has increasingly positioned itself as a multi-platform ecosystem, leading to speculation about its hardware future.
Matt Booty is getting promoted as part of the shakeup. Sharma praised his experience leading development teams and earning trust from game creators. Booty has overseen Xbox Game Studios through years of expansion and high-profile acquisitions.
The timing is unusual. Executive retirements typically come with long runways and succession plans. Having both Spencer and Bond exit simultaneously suggests something more complicated than a standard transition.
