End of an Era: Phil Spencer Leaves Xbox, New CEO Focuses on Console Comeback
Microsoft Gaming is undergoing a massive shift in leadership. Phil Spencer, who has led the Xbox division for the past decade, is stepping down as CEO. His retirement will officially take effect on February 23rd, marking a significant transition for the brand.
A Restructured Leadership Team
The changes extend beyond Spencer’s departure. Sarah Bond, the current president of Xbox and a prominent figure in the division, has also resigned from her position.
To lead the division forward, Microsoft has appointed Asha Sharma, the current president of CoreAI, as the new CEO. Additionally, Matt Booty has been promoted to Chief Content Officer, keeping game development closely tied to the top leadership.
It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been…
— Phil Spencer (@XboxP3) February 20, 2026
Sharma’s Three Core Priorities
In her introductory message, Sharma clearly outlined her strategy for the future of the platform. Her first priority centers entirely on the quality of the games themselves.
She emphasized the importance of strong characters, engaging stories, and innovative gameplay, committing to both established franchises and bold new ideas. Her second focus is “the return of Xbox,” which aims to re-center the physical console as the core of the brand’s identity.
While acknowledging the multi-platform reality of modern gaming, Sharma wants to rebuild the connection with long-time console players.
Find out more about the rumors of the next-gen Xbox console hardware being finalized!
Protecting the Craft of Development
Sharma’s third priority addresses the evolving landscape of game creation and technology. She discussed the implementation of new business models and shared tools to empower both developers and players.
Most importantly, she took a firm stance on the use of artificial intelligence in game development. Sharma stated that Microsoft will not flood the ecosystem with automatically generated content, reinforcing that games are art crafted by humans.
Today I begin my role as CEO of @Xbox.
— Asha (@asha_shar) February 20, 2026
Here are my three commitments:
1/ GREAT games
2/ Return of @Xbox
3/ Future of playhttps://t.co/6UNrpFm1Ki
The Next Era for the Green Brand
The departure of Phil Spencer and Sarah Bond represents the end of a defining chapter for Microsoft Gaming.
Under Spencer’s guidance, Xbox navigated major challenges and expanded its reach through initiatives like Game Pass and large studio acquisitions.
Now, the division faces a new set of challenges and opportunities under Asha Sharma’s leadership. With a renewed focus on core hardware, high-quality releases, and human-led development, the upcoming years will be vital in shaping the platform’s future.
A video game enthusiast ever since I first got my hands on a Game Boy. Over the years, I've played many different games across various genres, discovering hidden gems and niche titles along the way. I'm also passionate about technology, always up-to-date with the latest news and insight in the PC and Console market. Ready to share and bring you the latest news !
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