Microsoft said Friday that its longtime gaming head Phil Spencer will retire after 38 years at the company, signaling a major leadership shift for the Xbox maker, reports Reuters.
The company appointed insider Asha Sharma as executive vice president and CEO of Microsoft Gaming. Sharma previously led product development for AI models and services at Microsoft. In a statement, she pledged to renew focus on the Xbox console business and “recommit to our core Xbox fans and players.”
Microsoft’s gaming division has been grappling with tariff-driven cost pressures, stiff competition and uncertain consumer spending, prompting price increases for Xbox hardware. The company reported that gaming revenue fell about 9.5% in the December quarter and recorded impairment charges in the unit.
Microsoft completed its $69 billion acquisition of Activision Blizzard in 2023, bolstering its position in the global video game market after intense regulatory scrutiny. The deal added blockbuster franchises such as “Call of Duty” to its portfolio.
Despite the acquisition, the gaming unit continues to face strong competition from Sony’s PlayStation, particularly in console market share and exclusive game offerings.
Spencer will remain in an advisory role through the summer to ensure a smooth transition. Microsoft CEO Satya Nadella said succession planning had been underway since last year.
The company also announced that Sarah Bond, president and chief operating officer at Xbox, is leaving “to begin a new chapter.” Meanwhile, Matt Booty has been appointed executive vice president and chief content officer of the gaming division, reporting to Sharma.
Sharma previously held roles at Meta and Instacart.
Analysts say the transition comes as artificial intelligence plays a growing role in game development, requiring new leadership to steer Microsoft through a rapidly evolving technological landscape.
Bd-pratidin English/ Jisan
