Microsoft has announced a significant leadership change in its gaming division, appointing Asha Sharma as the new Executive Vice President and CEO of Microsoft Gaming. She succeeds longtime leader Phil Spencer, who is retiring after nearly four decades with the company, including over a decade steering the Xbox brand.
The transition was announced in a blog post by Microsoft CEO Satya Nadella, who praised Spencer’s contributions and expressed confidence in Sharma’s ability to lead the division forward. Spencer, who has led Xbox since 2014 and served as CEO of Microsoft Gaming since 2022, decided to retire last year. He will remain in an advisory role through the summer to ensure a smooth handover.
The reshuffle also includes other changes. Xbox President Sarah Bond is departing the company, while Matt Booty, head of Xbox Game Studios, has been promoted to chief content officer, reporting directly to Sharma.
A brief on Asha Sharma’s career history
Asha Sharma is an Indian-origin executive with a strong background in AI and consumer products, and previously headed product development for Microsoft’s CoreAI division. She joined Microsoft in 2024 after serving as chief operating officer at Instacart, where she guided the company through its IPO and profitability efforts. She also held product leadership roles at Meta Platforms. Earlier in her career, she worked in Microsoft’s marketing team before departing in 2013.
In her first note to employees, Sharma expressed both humility and urgency about the role. She wrote, “Dear team, Today I begin my role as CEO of Microsoft Gaming. I feel two things at once: humility and urgency. Humility because this team has built something extraordinary over decades. Urgency because gaming is in a period of rapid change, and we need to move with clarity and conviction.”
She outlined key priorities, including a focus on “great games,” “the return of Xbox,” and “the future of play.” Addressing concerns about AI’s growing role in the industry, Sharma highlighted a commitment to human creativity. “As monetisation and AI evolve and influence this future, 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, and created with the most innovative technology provided by us,” she said.
Sharma joins as Microsoft Gaming starts to struggle
The appointment comes amid challenges for Microsoft Gaming, including a roughly 9.5% decline in gaming revenue in the recent December quarter, impairment charges, tariff-related cost pressures, intense competition, and cautious consumer spending that led to recent Xbox hardware price increases.
Nadella highlighted Sharma’s consumer expertise as a key factor in her selection, as the division seeks to refocus on console players following years of expansion into mobile, PC, and cloud gaming.
The news has drawn attention in India, with industrialist Anand Mahindra congratulating Sharma on X (formerly Twitter), noting that her view of gaming as art—encompassing storytelling, design, music, and community—resonates deeply.