There has been a huge executive reshuffle at Microsoft Gaming as Phil Spencer retires as Microsoft Gaming CEO on Monday, February 23, 2026. Spencer has spent 38 years in the company, and his recent decisions, especially launching first-party titles on rival platforms, have sparked backlash from the Xbox community.
Asha Sharma, the new Xbox CEO
The position of Microsoft Gaming CEO will be filled by Asha Sharma, who joined Microsoft in 2024 as president of its CoreAI product. Sarah Bond has also resigned from her role. The head of Xbox Game Studios, Matt Booty, will be promoted to chief content officer and will work alongside Sharma.
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Spencer shared a message on X, reflecting on his journey in the Microsoft Gaming division. “It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me,” Spencer wrote.
“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 fortunate enough to share with so many of you.
“I’m excited for @asha_shar as she steps into the CEO role. She’s joining an incredible group of people; teams full of talent, heart, and a deep commitment to the players they serve. Watching her lean in with curiosity and a real desire to strengthen the foundation we’ve built gives me confidence that our Xbox communities will be well supported in the years ahead.
“Thinking back to my start as an intern in 1988, I never could have imagined the path ahead. I’ve been lucky to work with so many passionate creators, partners, colleagues, and players across the industry; people who challenged me, taught me, and made this work full of joy and wonder.
“Thank you to everyone who’s been part of this chapter. This community has meant more to me than I can say.
“From here, I’ll keep doing what’s always mattered so much to me: cheering on the teams pushing this industry forward and playing alongside this incredible community. I’ll see you online.”
Spencer turned 58 in January. He joined the Xbox team in 2001 and rose to the role of general manager of Microsoft Studios in 2008. After the disastrous Xbox One launch, Don Mattrick was ousted, and Spencer was promoted to the CEO of Microsoft Gaming.
Sarah Bond
In an email to Microsoft staff, CEO Satya Nadella said, “I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.”
It was widely assumed that Sarah Bond was being prepared to take over Spencer. However, in what seemed like a surprise to many, she resigned from her role.
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