- Primary Subject: Microsoft Gaming Leadership Transition
- Key Update: Phil Spencer retires as Microsoft Gaming CEO on Feb 23, succeeded by CoreAI President Asha Sharma. Sarah Bond has resigned as Xbox President, while Matt Booty is promoted to Chief Content Officer.
- Status: Transition effective Monday (Feb 23, 2026).
- Last Verified: February 20, 2026.
- Quick Answer: Phil Spencer departs after 40 years; an AI-focused executive takes the helm as the division restructures its top tier.
Phil Spencer is retiring as Microsoft Gaming CEO this Monday, February 23, according to a recent report by IGN. He is set to be succeeded by Asha Sharma, current President of Microsoft’s CoreAI product. Matt Booty, current head of Xbox Games Studios, is being promoted to Chief Content Officer.
Xbox President Sarah Bond has resigned. She was, in many people's eyes, the successor to Phil Spencer within the Microsoft gaming division, with her decision coming as a shock.
IGN obtained an internal email from Microsoft CEO Satya Nadella, confirming Spencer's departure from the company after nearly 40 years of service, including 12 years specifically leading its gaming division. Spencer himself confirmed in an email that he had discussed stepping from his role with Nadella back in the Fall, with Sharma selected as Spencer's successor.
In her own email addressing Microsoft staff, Sharma stated that she is committed to revitalizing the Xbox brand using three core pillars: first, developing "great games, empower our studios, invest in iconic franchises, and back bold new ideas." Second, respecting its core Xbox audience by continuing to develop new technologies in the console space. Finally, investing in new business models and" new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love."
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