Microsoft Gaming Leadership Shake-Up: Phil Spencer Retires as Asha Sharma Takes Charge

Redmond, Friday, 20 February 2026.
In a seismic shift for the video game industry, Phil Spencer has retired as CEO of Microsoft Gaming after 38 years, concluding a tenure that redefined the Xbox brand. He is effective immediately succeeded by Asha Sharma, a former Meta and Instacart executive who joined Microsoft’s CoreAI division in 2024. This massive leadership overhaul also marks the surprise resignation of Xbox President Sarah Bond. While Sharma brings deep technical expertise to the role, her inaugural address notably rejected “soulless AI slop,” promising a continued commitment to human-centric creativity. This transition signals a critical strategic pivot for Microsoft (NASDAQ: MSFT) as it navigates the complex integration of its $75 billion Activision Blizzard acquisition.