Phil Spencer Retiring from Microsoft, Asha Sharma Named New Xbox CEO

Phil Spencer Retires from Microsoft After 38 Years

Phil Spencer, the Microsoft Gaming CEO who helped rebuild Xbox from its troubled Xbox One era into a global gaming powerhouse, is retiring effective February 23, IGN has exclusively reported. Spencer joined Microsoft as an intern in 1988 and has been with Xbox since the console's launch in 2001.

The End of an Era for Xbox

Spencer was appointed Head of Xbox in March 2014, tasked with repairing a brand damaged by the controversial Xbox One launch. Over his 12-year tenure, he oversaw the acquisition of dozens of game studios — from Bethesda to the landmark $69 billion purchase of Activision-Blizzard-King — transforming Xbox's first-party game catalog.

Microsoft CEO Satya Nadella wrote in an email to staff: 'Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.'

Sarah Bond Also Departing

Xbox President Sarah Bond, who joined Xbox in 2017 and was named President in 2022, is also leaving the company. Matt Booty, head of Xbox Game Studios, is being promoted to a new role.

New CEO Asha Sharma's Three Commitments

Asha Sharma, a former VP at Meta and ex-COO of Instacart who joined Microsoft in 2024, steps in as the new Microsoft Gaming CEO. She outlined three core commitments:

Great games first: Everything begins with great, beloved games

The return of Xbox: Recommitting to core Xbox fans and console gaming heritage

Future of play: Seamless gaming across PC, mobile, and cloud

Sharma also addressed AI in gaming: 'We will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans.' The transition represents the biggest leadership shakeup in Xbox history.