The gaming world is currently in shock, as earlier today it was announced that Phil Spencer, CEO of Microsoft Gaming, is stepping down and retiring from his role. This retirement marks the end of his 38 years at Microsoft. Spencer will, of course, be most remembered for taking on the role of Head of Xbox in March 2014, following the departure of Don Mattrick after a poor launch of the Xbox One generation.
In the 12 years since taking on that role, Phil Spencer is credited with steadying the ship and saving the Xbox brand from closure during the Xbox One’s life cycle. On top of that, he has seemingly been a driving force behind some of the biggest changes to the gaming landscape. From the launch of Gamepass and a push for cross-play in major titles, to overseeing the biggest gaming acquisition of all time with Microsoft’s deal to purchase Activision Blizzard. More recently, he has come under heavy fire from the Xbox community for Microsoft’s decision to move first-party games to a multiplatform model, leaving many longtime fans feeling abandoned and alienated by the brand.
Whether all these choices were ultimately his or not, one thing is for certain. Phil Spencer will leave a lasting impact on the games industry, and he will be missed by many.
Here is what Spencer said on Microsoft’s Official Blog:
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 learned so much from this team and community, grown alongside you, and been continually inspired by the creativity, courage, and care you bring to players, creators, and to one another every 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
Sarah Bond Is Also Leaving Xbox
For years, it has been speculated that once Phil Spencer made the decision to retire, Xbox President Sarah Bond would step up to take on the role as CEO of Microsoft Gaming. However, to the surprise of almost everyone, Sarah Bond has decided to depart Microsoft in search of pastures new.
Here’s what she had to say via her LinkedIn:
Sharing with gratitude the note I sent to my team today. Grateful to our players, developers, partners, and team. Forever a fan of Xbox. 💚
—–
Hi team,I know there’s a lot of news to take in today.
I’m incredibly proud of what we’ve built together over the past eight-plus years. PC and cloud gaming are growing faster than ever, our next console is well underway, and together we’ve helped lay the foundation for a more open gaming platform that spans devices and reaches players around the world.
When we announced our intention to acquire Activision Blizzard in 2022, I committed to helping lead Xbox through what would be a critical period of change. Over the past four years, we’ve navigated that moment together and positioned the business for what comes next. We took on some of the biggest challenges this organization has ever faced and did it as one team.
With that, I’ve decided this is the right time for me to take my next step, both personally and professionally. We’re living through a transformative technological era that will shape the next generation of our industry, and I’m energized by what’s ahead. This moment also presents a unique opportunity for fresh eyes and new leadership to guide the team into its next chapter. I’ve had the privilege of spending time with Asha over the last few weeks as we’ve planned for this transition, and I’ve seen firsthand her deep commitment to our players, developers, and brand. She brings deep technology and commerce experience, along with a strong track record of building and scaling platforms that the world uses. Xbox deserves this. I’m excited to see her lead this next chapter for our team. I’ll remain on as a Special Advisor to Asha to help ensure a smooth transition and set the organization up for continued success.
I want to thank Phil for his mentorship and friendship over the years. He’s been a consistent champion of this business and the people who make it what it is, and I’ve learned a great deal from the way he leads through both opportunity and challenge. I’m grateful for his trust and support throughout my time on the team. I also want to thank Satya for his sponsorship and support throughout my time at Microsoft.
As I prepare to sign off, I’ve been reflecting on three simple questions I’ve tried to use to guide my days:
Did I bring my best?
Did I help someone else succeed?
Did I do my best work?I hope the answer has been yes for many of you. It’s been a privilege to work alongside this team.
Always,
Sarah
What Next For Xbox?
Following these departures, it was announced that Asha Sharma will become the next CEO of Microsoft Gaming. 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 a global scale, which will be critical in leading our gaming business into its next era of growth.
Following her appointment, she made a statement to the team at Microsoft, which can be found on their official blog. Here’s what Sharma had to say:
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 connects people and pushes 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 starts with three commitments.
First, great 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.
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.
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
This is a well crafted statement, but I’m sure many fans of the brand, including myself, will hope this signals a return to the Xbox we all know and love. I, for one, am a little bit unsure of this, but I’ll always give the benefit of the doubt at first. I want gaming to be great, and for that, we need a strong offering from Xbox that appeals to its fans. Asha Sharma isn’t the only one with a new role, as she mentioned in the above statement. Today’s leadership changes will also see Matt Booty promoted.
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 encompass nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King, home to beloved franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
Here’s what he had to say regarding his promotion:
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
Any major change like this is sure to raise questions and concerns from both internal teams and Xbox fans. All we can do now is wish the new leadership the best and hope they can deliver on what they have said today.
I want to end by saying a massive congratulations to Phil Spencer on his career and a happy retirement. Thank you for all you have given to the industry over the decades.
Sources: Press Release, Microsoft Blog and Sarah Bond’s LinkedIn
