Microsoft has announced a change of leadership in its gaming division. Asha Sharma will now lead Microsoft Gaming. Phil Spencer, who headed Xbox for more than a decade, has retired after spending nearly 38 years at the company. The transition signals continuity with fresh ambition. It also places an Indian-origin leader at the centre of global gaming strategy.
Microsoft confirmed that Asha Sharma will serve as Executive Vice President and CEO of Microsoft Gaming. She will report directly to Satya Nadella. The appointment follows a structured succession plan. Phil Spencer announced his retirement after nearly 38 years at Microsoft. He led Xbox for 12 years and reshaped its global footprint.
Satya Nadella described gaming as foundational to Microsoft’s identity. He noted that Xbox currently has over 500 million monthly active users. Microsoft Gaming stands among the top publishers across platforms. Nadella praised Asha Sharma for building and scaling global platforms. He stressed her ability to align innovation with long-term value.
Asha Sharma joined Microsoft two years ago. She previously served as Chief Operating Officer at Instacart. She also held a senior leadership role at Meta. At Microsoft, she led CoreAI product initiatives. Her background includes a blend of artificial intelligence, platform design, and consumer growth, which will now shape the future of Microsoft Gaming.
Phil Spencer will be an advisor through the summer. He called the move deliberate and stable. Under his leadership, Microsoft Gaming nearly tripled in size. The company acquired Activision Blizzard in a $69 billion deal. It also expanded through ZeniMax and Minecraft. The portfolio now spans nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King.
Matt Booty now serves as Executive Vice President and Chief Content Officer. He will oversee global studios and franchises like Halo and Call of Duty. Sarah Bond will exit after guiding platform strategy and Game Pass expansion.
In her first message, Asha Sharma outlined clear priorities. She pledged to deliver great games. She reaffirmed her commitment to the Xbox console heritage. Asha emphasized that the future of gaming will be shaped by responsible AI and rejected short-term efficiency that weakens creativity.
Microsoft Gaming faces intense competition from Sony and Nintendo. Console growth has slowed. Game Pass subscriptions have crossed 35 million users. Investors watch performance closely after the Activision Blizzard acquisition. Nadella described platform innovation and content development as twin engines of growth.
The leadership shift arrives as Xbox marks its 25th anniversary. Microsoft positions gaming at the heart of its consumer ecosystem. Satya Nadella described the opportunity ahead as wide and promising. Cloud delivery, AI integration, and hardware innovation now converge. Microsoft now looks to combine platform growth, strong content, and AI innovation under Asha Sharma’s leadership. Asha Sharma inherits a vast global network across console, PC, mobile, and cloud.
While Phil Spencer shaped the modern Xbox era, Asha Sharma will now lead Microsoft Gaming into an AI-driven future with a clear focus on ensuring strong content, scalable platforms, and creative integrity.