Microsoft has named Asha Sharma the new Executive Vice President and CEO of Microsoft Gaming, marking a major leadership transition as longtime Xbox head Phil Spencer retires and the company reshapes its gaming leadership for the next 25 years of Xbox. Sharma will report directly to Microsoft Chairman and CEO Satya Nadella and will oversee the entire Microsoft Gaming organization, including Xbox, Bethesda, Activision Blizzard, and King.
A new leader for Microsoft Gaming
Sharma steps into the role after two years at Microsoft, where she led product development for the company’s CoreAI products, and after previous leadership roles as Chief Operating Officer at Instacart and a Vice President at Meta. Nadella highlighted her track record in building and scaling consumer platforms that reach billions of users, aligning business models to long‑term value, and operating at global scale as key reasons for her appointment. He framed gaming as central to Microsoft’s consumer ambitions, noting that Xbox now reaches over 500 million monthly active users and is a top publisher across platforms.
In her first message to the Microsoft Gaming team, Sharma said she feels both “humility and urgency,” recognizing decades of work by generations of creators while stressing that gaming is in a period of rapid change. She described her “first job” as understanding what makes Microsoft’s gaming work and protecting it, calling Xbox a platform founded on the belief that the power of games connects people and pushes the industry forward.
Three pillars: great games, the return of Xbox, and the future of play
Sharma outlined three core commitments that will guide her tenure: great games, the “return of Xbox,” and the future of play.
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Great games
Sharma said “everything begins” with great games, emphasizing unforgettable characters, emotional stories, innovative gameplay, and creative excellence as non‑negotiables. She committed to empowering studios, investing in iconic franchises, backing bold new ideas, taking risks, and entering new categories and markets where Microsoft can add real value for players. Promoting Matt Booty was explicitly framed as part of this commitment, citing his experience leading award‑winning teams and earning the trust of game developers across the industry. -
The return of Xbox
Sharma pledged to “recommit to our core Xbox fans and players” who have invested in the brand over the past 25 years and to the developers who build expansive universes for them. She said Microsoft will celebrate its roots with a renewed commitment to Xbox starting with console, which she described as central to the company’s identity and connection to its most dedicated fans. At the same time, she acknowledged that gaming now spans devices across PC, mobile, and cloud, and said Xbox should feel seamless, instant, and worthy of the communities it serves. Part of that vision is “breaking down barriers” so developers can build once and reach players everywhere without compromise. -
Future of play
Looking ahead, Sharma said the industry is “witnessing the reinvention of play” and that Microsoft intends to invent new business models and new ways to play by leaning on its iconic teams, characters, and worlds. She stressed that Microsoft will not treat its franchises as static IP “to milk and monetize,” but rather build a shared platform and tools that let developers and players create and share their own stories. On monetization and AI, she drew a firm line, promising that Microsoft will not chase short‑term efficiency or “flood our ecosystem with soulless AI slop,” and insisting that games are and will remain art crafted by humans using innovative technology.
Sharma closed by calling for a return to the “renegade spirit” that originally built Xbox, urging teams to question everything, revisit processes, protect what works, and be brave enough to change what does not.
Matt Booty elevated to Chief Content Officer
Alongside Sharma’s appointment, Matt Booty has been promoted to Executive Vice President and Chief Content Officer, reporting directly to her. Booty has overseen a studios organization that now spans nearly 40 teams across Xbox Game Studios, Bethesda, Activision Blizzard, and King, home to franchises like Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
In his own note to employees, Booty said his focus will be on supporting existing teams and leaders and creating the conditions for them to do their best work. He emphasized that there are “no organizational changes underway” for Microsoft’s studios as part of this transition, signaling stability for developers amid broader leadership shifts. Booty also said his early conversations with Sharma centered on her commitment to great games and grounding decisions in player and developer needs, which he sees as crucial as player behavior, game development, and business models continue to evolve.
Phil Spencer retires, Sarah Bond departs
This leadership reset comes as Phil Spencer, one of the most recognizable figures in gaming, retires from Microsoft after 38 years at the company and 12 years leading the gaming business. Nadella credited Spencer with nearly tripling the size of the gaming business, expanding Xbox’s reach across PC, mobile, and cloud, and helping shape strategy through major acquisitions such as Activision Blizzard, ZeniMax, and Mojang’s Minecraft.
In his farewell message, Spencer reflected on his “epic ride” at Microsoft and described Xbox as “more than a business,” calling it a vibrant community of players, creators, and teams. He said he first told Nadella last fall that he was considering stepping back and that the pair agreed to approach the transition with intention to ensure stability and strengthen the foundation they had built. Spencer voiced strong confidence in Sharma and Booty, saying working with Sharma over the past several months had given him “tremendous confidence” in her leadership and confirming he will remain in an advisory role through the summer to support a smooth handoff.
As part of the same transition, Xbox president Sarah Bond has decided to leave Microsoft to begin a new chapter in her career. Spencer praised Bond’s impact during what he called a defining period for Xbox, pointing to her role in shaping platform strategy, expanding Xbox Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in Xbox history.
What this could mean for Xbox’s next era
Nadella framed these moves as setting up Microsoft Gaming for its “next era of growth” at a time when Xbox is celebrating its 25th year and reaching more than 500 million monthly active users across platforms. With Sharma’s background in AI‑powered consumer products and platform scale, combined with Booty’s deep roots in game development and studio leadership, Microsoft is positioning its gaming arm at the intersection of long‑term content investment, multiplatform distribution, and responsible use of AI.
Sharma’s explicit pledge to refocus on “the return of Xbox” and core console fans, while also making Xbox feel seamless across PC, mobile, and cloud, signals that Microsoft does not intend to walk away from hardware even as it leans further into services and cross‑device play. Her strong language around avoiding “soulless AI slop” will likely resonate with both developers and players who are wary of over‑automation in creative work, even as Microsoft continues to weave AI more deeply into its platforms.
For now, Microsoft’s message to players and partners is continuity with a renewed edge: studios will keep their current structures, the content pipeline remains a priority, and a new leadership duo is being tasked with pushing platform innovation and game creativity forward while honoring Xbox’s legacy.
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