This is a major page in the history of Xbox that is being turned. Phil Spencer, emblematic figure of the brand and CEO of Microsoft Gaming, will officially retire on February 23, 2026. After 38 years at Microsoft, including 12 at the head of the video games division, he leaves behind a profoundly transformed company.
This announcement comes a few months before Xbox’s 25th anniversary. At the same time, Sarah Bond leaves the company, while Asha Sharma is named new CEO of Microsoft Gaming. Matt Booty, for his part, is promoted to content director.
Phil Spencer leaves Xbox after 38 years at Microsoft
Satya Nadella praised his journey, saying: “I would like to thank Phil for his exceptional leadership and partnership.” He added: “During his 38 years at Microsoft, including 12 as head of the Video Games division, Phil helped transform our business and the way we work.”
Spencer himself confirmed that this decision was carefully considered: “Last fall, I confided to Satya that I was considering taking a step back and starting a new chapter in my life.”
He emphasized the importance of the transition: “Xbox has always been more than just a company.” Under his leadership, Xbox has seen major acquisitions, including Activision Blizzard for $69 billion and ZeniMax for $7.5 billion, while expanding the Xbox Game Pass service.
Asha Sharma named CEO of Microsoft Gaming
Asha Sharma is now taking charge. In her first message to the teams, she said: “My first job is simple: understand what makes this organization tick and protect it.” She also clarified her strategic vision: “We will not consider these universes as static licenses to be exploited and monetized.”
On the role of technology and artificial intelligence, she said: “Games are and always will be an art, shaped by humans.” Sharma intends to refocus the strategy around big games, a return to Xbox’s console roots and a broader multiplatform vision.
Sarah Bond leaves the company, Matt Booty promoted
Sarah Bond, long seen as Spencer’s natural successor, has chosen to leave Microsoft. No additional details were provided about his departure. Matt Booty becomes chief content officer. He responded by writing, “I’m excited to partner with Asha, our next CEO.” And added: “We have good reasons to be optimistic about the future.” He specifies that no organizational changes are planned for the studios.
A transition as the 25th anniversary of Xbox approaches
Phil Spencer will remain as advisor until the summer to ensure continuity: “I will remain as advisor throughout the summer to ensure a smooth transition.” The transition comes as Xbox prepares for its 25th anniversary and seeks to consolidate its position after years marked by massive acquisitions, price hikes and increased competition.