Phil Spencer is stepping away from his role leading Microsoft's gaming division after 38 years with the company. Company insider Asha Sharma will take over as the new gaming CEO, promising to refocus on Xbox console fans amid industry challenges.
Microsoft announced Friday that Phil Spencer, the longtime leader of its gaming operations, will step down after spending nearly four decades with the tech giant, marking a significant leadership transition during challenging times for the gaming industry.
Asha Sharma, a company insider, has been appointed as the new executive vice president and CEO of Microsoft’s gaming division, where she will report directly to Microsoft’s Chairman and CEO Satya Nadella.
In her new role, Sharma pledged to refocus efforts on Xbox gaming systems, stating her intention to “recommit to our core Xbox fans and players.”
The gaming division faces mounting pressures from tariff-related expenses, intense market competition, and unpredictable consumer purchasing patterns, which have forced the company to increase Xbox hardware prices.
Microsoft’s gaming revenues dropped approximately 9.5% during the most recent quarter, according to company reports from last month, while the division also recorded undisclosed impairment losses.
The technology company completed its massive $69 billion acquisition of Activision Blizzard, the studio behind “Call of Duty,” in 2023, significantly expanding Microsoft’s presence in the video game industry following extensive regulatory review.
Microsoft’s gaming operations face intense rivalry from Sony’s PlayStation brand, especially in console sales and exclusive gaming content.
Spencer will continue working with the company in an advisory capacity through the summer months to facilitate a seamless leadership transition.
“Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning,” Nadella explained.
Additionally, Microsoft announced that Sarah Bond, who served as Xbox’s president and chief operating officer, is departing the company “to begin a new chapter.”
Matt Booty has been promoted to executive vice president and chief content officer within the gaming division, Microsoft confirmed.
Previously, Booty held the position of president overseeing game content and development studios at Microsoft, based on his professional profile.
Booty will report to Sharma, who brings experience from previous positions at Meta and the online grocery service Instacart, Microsoft stated.