Phil Spencer Retiring, Sarah Bond Out, Matt Booty Promoted As Microsoft AI Exec Asha Sharma Named New Xbox Boss

Microsoft Gaming CEO Phil Spencer, who has been at Microsoft since he joined as an intern in 1988 and with Xbox because the software program large launched its first console in 2001, is retiring, sources acquainted with the matter who usually are not approved to talk publicly confirmed to IGN. Spencer’s retirement is efficient on Monday, February 23. Meanwhile, Xbox President Sarah Bond, lengthy thought by many each inside and out of doors of Microsoft to be Spencer’s inheritor obvious, has resigned. The new CEO of Microsoft Gaming shall be Asha Sharma, at present the President of Microsoft’s CoreAI product. Finally, Xbox Game Studios head Matt Booty is being promoted to Chief Content Officer and can work carefully with Sharma.

“I want to thank Phil for his extraordinary leadership and partnership,” Microsoft CEO Satya Nadella stated in an e-mail despatched to Microsoft workers. “Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.” Full emails from Nadella, Spencer, Sharma, and Booty are beneath.

Spencer, in his e-mail to Microsoft workers, stated partially: “Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.

“Today marks an thrilling new chapter for Microsoft Gaming as Asha Sharma steps into the function of CEO, and I wish to be the primary to welcome her to this unimaginable workforce. Working together with her over the previous a number of months has given me super confidence. She brings real curiosity, readability and a deep dedication to understanding gamers, creators, and the selections that form our future. We know this is a crucial second for our followers, companions, and workforce, and we’re dedicated to getting it proper. I’ll stay in an advisory function via the summer season to assist a easy handoff.”

New Microsoft Gaming CEO Asha Sharma and new Xbox Chief Content Officer Matt Booty

Sharma is a former VP of Product and Engineering at Meta and former Instacart COO who is also a board member of The Home Depot. She joined Microsoft in 2024. In her email to Microsoft staff, she wrote, in part: “My first job is easy: perceive what makes this work and shield it. That begins with three commitments. First, nice video games. Everything begins right here. We will need to have nice video games beloved by gamers earlier than we do something. Unforgettable characters, tales that make us really feel, progressive recreation play, and artistic excellence. We will empower our studios, put money into iconic franchises, and again daring new concepts. We will take dangers. We will enter new classes and markets the place we are able to add actual worth, grounded in what gamers care about most. I promoted Matt Booty in honor of this dedication. He understands the craft and the challenges of constructing nice video games, has led groups that ship award-winning work, and has earned the belief of recreation builders throughout the trade.

“Second, the return of Xbox. We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world. We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.

“Gaming now lives throughout units, not inside the limits of any single piece of {hardware}. As we increase throughout PC, cellular, and cloud, Xbox ought to really feel seamless, on the spot, and worthy of the communities we serve. We will break down boundaries so builders can construct as soon as and attain gamers in all places with out compromise.

“Third, future of play. We are witnessing the reinvention of play. To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love. But we will not treat those worlds as static IP to milk and monetize. We will build a shared platform and tools that empower developers and players to create and share their own stories.

As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”

Booty stated in his e-mail to Microsoft workers: “Looking forward, I’m excited to partner with Asha as our next CEO. Our first conversations centered on her commitment to making great games and the role that plays in our overall success. She asks questions, pushes for clarity, and wants our choices grounded in player and developer needs. That mindset matters as the industry around us is changing quickly: how players engage, how games are made, and how business models and platforms evolve.

“We have good causes to imagine in what’s forward. This group and its franchises have navigated change for many years, and our energy comes from groups who know adapt and maintain delivering. That confidence is grounded in a robust pipeline of established franchises, new bets we imagine in, and clear participant demand for what we’re constructing.”

Bond joined Xbox in 2017 following a stint as an executive at T-Mobile – this after both her parents worked in the telecom industry – as Xbox’s corporate VP of bizdev and partnerships. She became corporate VP of game creator experience and ecosystem after that before being named President of Xbox in 2022.

Spencer was named Head of Xbox in March of 2014, when he was tasked with righting a ship that had made a number of product choices and policy decisions that rubbed core gamers the wrong way in the run-up to the launch of the Xbox One in Fall 2013. Long hailed by gamers as being one of their own, Spencer could frequently be found on Xbox Live, playing games regularly with fellow Xbox gamers and racking up a healthy Gamerscore. His first major move when put in charge was decoupling the Kinect 2.0 peripheral from the Xbox One package, thus immediately reducing the new console’s price by $100 to $399, matching the day-one price of Sony’s PlayStation 4. He spearheaded the much-heralded backwards compatibility motion inside Xbox, the Xbox Game Pass service was born below his watch, and accessibility made main advances throughout his tenure in each {hardware} and software program. Xbox Play Anywhere, which sought to let gamers play their Xbox games on any device, be it a PC, console, or handheld, isn’t new but has been a big recent focal point.

Spencer’s time running Xbox will perhaps be most remembered for Microsoft’s $69 billion acquisition of Activision-Blizzard-King in 2022.“

Spencer’s time running Xbox will perhaps be most remembered for Microsoft’s $69 billion acquisition of Activision-Blizzard-King in 2022, which took almost two years to achieve regulatory approval from various agencies around the world. But Spencer began trying to solve for Xbox’s dearth of first-party games in 2018, when the first wave of studio acquisitions occurred. Prior to the Activision deal, Spencer’s biggest move came with the $7.5 billion acquisition of ZeniMax, parent company of Bethesda, in 2020. The deal gave Xbox total ownership of Bethesda Game Studios and its Fallout and Elder Scrolls franchises along with id Software and its Doom and Quake IPs, among many others. Questions arose from there about whether or not that meant all of Xbox’s new studios would produce games exclusively for Xbox consoles, and while some games were kept off of PlayStation platforms temporarily, many weren’t and most now seem to come to PS5 eventually, if not on day one.

Xbox launched one new console generation during Spencer’s time at the helm: the Xbox Series X and Series S. The unique two-pronged hardware strategy aimed to give core gamers the most powerful console on the market while offering more casual gamers a more affordable entry point into Xbox’s fourth generation. A global pandemic and a lack of compelling software to take advantage of the new machines got the Xbox Series off to a slow start from which it has never really recovered, culminating in a disastrous holiday 2025 sales period that followed two price increases on the aging hardware in the span of six months, along with a significant bump in the subscription price for Xbox Game Pass Ultimate, the top tier of the service that includes the ability to play new releases on day one. The subsequent Microsoft quarterly earnings report painted a grim picture for the gaming division.

Xbox has finally been regularly delivering a steady cadence of good-quality games over the past year-plus, from STALKER 2: Heart of Chornobyl, Call of Duty: Black Ops 6, Microsoft Flight Simulator 2024, and Indiana Jones and the Great Circle in Fall 2024 to Avowed, South of Midnight, Doom: The Dark Ages, Ninja Gaiden 4, Keeper, The Outer Worlds 2, and the not-as-well-received Call of Duty: Black Ops 7 in 2025 to a 2026 lineup that looks set to include Forza Horizon 6, Fable, Gears of War: E-Day, and the Unreal Engine 5-powered remake Halo: Campaign Evolved.

Here are the full emails from Nadella, Spencer, Sharma, and Booty:

Microsoft CEO Satya Nadella:

Gaming has been part of Microsoft from the start. Flight Simulator shipped before Windows, and you can practically ray‑trace a line from DirectX in the ’90s to the accelerated‑compute era we’re in today.

As we celebrate Xbox’s 25th year, the opportunity and innovation agenda in front of us is expansive. Today we reach over 500 million monthly active users, are a top publisher across all platforms, and continue to innovate across gaming hardware, content and community, in service of creators and players everywhere.

I am long on gaming and its role at the center of our consumer ambition, and as we look ahead, I’m excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, reporting to me. Over the last two years at Microsoft, and previously as Chief Operating Officer at Instacart and a Vice President at Meta, Asha has helped build and scale services that reach billions of people and support thriving consumer and developer ecosystems. She brings deep experience building and growing platforms, aligning business models to long-term value, and operating at global scale, which will be critical in leading our gaming business into its next era of growth.

Matt Booty will become Executive Vice President and Chief Content Officer, reporting to Asha. Matt’s career reflects a lifelong commitment to games and to the people who make them. Under his leadership, Microsoft Gaming has grown to span nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King, which are home to beloved franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.

Together, Asha and Matt have the right combination of consumer product leadership and gaming depth to push our platform innovation and content pipeline forward. Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning. 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. He expanded our reach across PC, mobile, and cloud; nearly tripled the size of the business; helped shape our strategy through the acquisitions of Activision Blizzard, ZeniMax, and Minecraft; and strengthened our culture across our studios and platforms. I’ve long admired Phil’s unwavering commitment to players, creators, and his team, and I am personally grateful for his leadership and counsel. He will continue working closely with Asha to ensure a smooth transition.

We have extraordinary creative talent across our studios and a global platform that is second to none. I’m excited for how we will capture the opportunity ahead and define what comes next, while staying grounded in what players and creators value.

Please join me in congratulating Asha and Matt on their new roles, and in thanking Phil for everything he has done for Microsoft and for our industry.

Retiring Microsoft Gaming CEO Phil Spencer

Subject: A New Chapter for Microsoft Gaming

When I walked through Microsoft’s doors as an intern in June of 1988, I could never have imagined the products I’d help build, the players and customers we’d serve, or the extraordinary teams I’d be lucky enough to join. It’s been an epic ride and truly the privilege of a lifetime.

Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.

Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff.

I’m also grateful for the strength of our studios organization. Matt Booty and our studios teams continue to build an incredible portfolio, and I have full confidence in the leadership and creative momentum across our global studios. I want to congratulate Matt on his promotion to EVP and Chief Content Officer.

As part of this transition, Sarah Bond has decided to leave Microsoft to begin a new chapter. Sarah has been instrumental during a defining period for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in our history. I’m grateful for her partnership and the impact she’s had, and I wish her the very best in what comes next.

Most of all, to everyone in Microsoft Gaming, I want to say “thank you”. I’ve discovered a lot from this workforce and group, grown alongside you, and been regularly impressed by the creativity, braveness, and care you convey to gamers, creators, and to 1 one other every single day.

I’m incredibly proud of what we’ve built together over the last 25 years, and I have complete confidence in all of you and in the opportunities ahead. I’ll be cheering you on in this next chapter as Xbox’s proudest fan and player.

Phil

XBL: P3

New Microsoft Gaming CEO Asha Sharma

Dear team,

Today I begin my role as CEO of Microsoft Gaming.

I feel two things at once: humility and urgency.

Humility because this team has built something extraordinary over decades. Urgency because gaming is in a period of rapid change, and we need to move with clarity and conviction.

I am stepping into work shaped by generations of artists, engineers, designers, writers, musicians, operators and more who create worlds that have brought joy and deep personal meaning to hundreds of millions of players. The level of craft here is exceptional, and it is amplified by Xbox, which was founded in the belief that the power of games connect people and push the industry forward.

Thank you to Phil for his leadership, and to every studio, platform, and operations team that built this foundation. We are stewards of some of the most loved stories and characters in entertainment and bring players and creators together around the fun and community of gaming in entirely new ways.

My first job is simple: understand what makes this work and protect it.

That begins with three commitments.

First, nice video games.

Everything begins here. We must have great games beloved by players before we do anything. Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most.

I promoted Matt Booty in honor of this commitment. He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry.

Second, the return of Xbox.

We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world.

We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.

Gaming now lives across devices, not within the limits of any single piece of hardware. As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve. We will break down barriers so developers can build once and reach players everywhere without compromise.

Third, future of play.

We are witnessing the reinvention of play.

To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love. But we will not treat those worlds as static IP to milk and monetize. We will build a shared platform and tools that empower developers and players to create and share their own stories.

The next 25 years belong to the teams who dare to build something surprising, something no one else is willing to try, and have the patience to see it through. We have done this before, and I am here to help us do it again. I want to return to the renegade spirit that built Xbox in the first place. It will require us to relentlessly question everything, revisit processes, protect what works, and be brave enough to change what does not.

Thank you for welcoming me into this journey.

Asha

Xbox Chief Content Officer Matt Booty

I read Phil’s note with much gratitude. He has been a steady champion for game creators and our studio teams, and I’ve learned so much from his leadership over the years. All our games have benefited from his foundational support. I’m also grateful to Satya for his ongoing commitment to gaming and holding a vision of how it can connect back to the larger company.

Looking forward, I’m excited to partner with Asha as our next CEO. Our first conversations centered on her commitment to making great games and the role that plays in our overall success. She asks questions, pushes for clarity, and wants our choices grounded in player and developer needs. That mindset matters as the industry around us is changing quickly: how players engage, how games are made, and how business models and platforms evolve.

We have good reasons to believe in what’s ahead. This organization and its franchises have navigated change for decades, and our strength comes from teams who know how to adapt and keep delivering. That confidence is grounded in a strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building.

My focus is on supporting the teams and leaders we have in place and creating the conditions for them to do their best work. To be clear, there are no organizational changes underway for our studios.

Thanks for everything you do for players and for each other.

-Matt

Ryan McCaffrey is IGN’s government editor of previews and host of each IGN’s weekly Xbox present, Podcast Unlocked, as properly as our semi-retired interview present, IGN Unfiltered. He’s a North Jersey man, so it is “Taylor ham,” not “pork roll.” Debate it with him on Twitter at @DMC_Ryan.