Microsoft's Xbox gaming division sees major leadership changes: Phil Spencer departs after 12 years, replaced by AI executive Asha Sharma. Amid falling sales, fans worry about future strategy.
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A major reshuffle has taken place in Microsoft's Xbox leadership, sparking immediate concern among players. After 12 years at the helm of the gaming division, Phil Spencer has announced his departure. He is being joined by Xbox President Sarah Bond, who was widely considered his likely successor. The new CEO of Microsoft Gaming is Asha Sharma—a top executive with no experience in the gaming industry.
Sharma's appointment has become the primary focus of criticism. Before joining Microsoft in 2024, she worked at Instacart and focused on artificial intelligence products. She has no managerial or other experience in the games business. The company explained the personnel changes as a move to strengthen the integration of AI and gaming services, but no specific strategy was presented. Amid this uncertainty, many Xbox fans fear the focus will shift toward technology and monetization rather than creating strong exclusives.
The situation is complicated by financial performance. For the 2025 fiscal year, revenue from Xbox console sales fell by 32%, while the gaming division's overall turnover dropped by 9%. Insiders suggest Spencer had planned to leave after the launch of the next Xbox generation, but weak results may have accelerated his exit.
Xbox now enters a period of serious turbulence. The loss of an experienced leader, the departure of the presumed successor, and the appointment of a CEO without a gaming background all come against a backdrop of falling sales and an uncertain future for the platform. For a brand already balancing a service model with a console strategy, this could become its most challenging phase in recent years.