
Microsoft has announced the retirement of long-time gaming chief Phil Spencer, with Xbox president Sarah Bond also stepping down. Spencer will be replaced by Asha Sharma, an executive previously involved in the company’s artificial intelligence initiatives.
The leadership change follows a difficult year for Xbox marked by layoffs, weaker sales and rising development costs. Matt Booty has been promoted to chief content officer, with Microsoft stressing there are no wider organisational changes planned for its studios.
Sharma’s appointment has divided fans, with some questioning her lack of gaming background. Others suggest her experience in AI and technology could help Xbox compete in a shifting digital landscape. Sharma has said games will remain creative works made by people, not driven by «soulless AI».
Spencer joined Microsoft in 1988 and became head of Microsoft Gaming in 2022. He oversaw major acquisitions including Mojang and Activision Blizzard and launched Xbox Game Pass. In a farewell message, he said he felt fortunate to have worked with creators and players across the industry.
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