Technology giant Microsoft has announced that its longtime gaming head Phil Spencer will retire after 38 years with the company, marking a major leadership transition within its gaming division.
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The company appointed Asha Sharma as executive vice president and chief executive of Microsoft Gaming. Sharma previously led product development for artificial intelligence models and services at Microsoft and is expected to steer the division through a period of technological change.
In a statement, Sharma said she plans to renew focus on the Xbox platform, aiming to “recommit to our core Xbox fans and players.”
Microsoft’s gaming business has recently faced challenges, including tariff-driven cost pressures, strong market competition and uncertain consumer spending, which have led to price increases for Xbox hardware. The company reported a roughly 9.5 per cent decline in gaming revenue during the December quarter and recorded impairment charges in the segment.
The division expanded significantly after Microsoft completed its $69 billion acquisition of Activision Blizzard in 2023, the maker of the popular Call of Duty franchise, following intense regulatory scrutiny worldwide.
Microsoft Gaming continues to compete closely with Sony and its PlayStation ecosystem in the global console market, particularly in exclusive game offerings and hardware sales.
Spencer said he would remain in an advisory capacity through the summer to ensure a smooth leadership transition. Microsoft CEO Satya Nadella confirmed that succession planning had been underway for some time.
The company also announced that Xbox president and chief operating officer Sarah Bond will leave to pursue new opportunities. Meanwhile, Matt Booty has been appointed executive vice president and chief content officer and will report directly to Sharma.
Industry analysts say the leadership overhaul comes as artificial intelligence increasingly reshapes game development and the broader gaming industry.
