Microsoft gaming chief Phil Spencer steps down after 38 years with company

February 21, 2026

Here's something that caught my attention — after 38 years at Microsoft, Phil Spencer, the guy behind Xbox’s rise, is stepping down. Kyle Orland from Ars Technica reports that Spencer told Microsoft CEO Satya Nadella last fall he was ready for a new chapter. Now, here’s where it gets interesting: Asha Sharma, who’s been leading Microsoft's CoreAI division, will take over as the new head of gaming. And get this — Sarah Bond, who many thought was being groomed as Spencer’s successor, is also resigning. Meanwhile, Matt Booty, the head of Xbox Studios, is getting a big promotion to EVP and Chief Content Officer, working closely with Sharma. According to Spencer, he’ll stay on in an advisory role through the summer to help with the transition. So, what does this mean for Xbox? Big leadership changes are afoot, and it could shape the future of gaming at Microsoft in ways we’ll want to watch closely. Kyle Orland highlights that this marks a major shift in the company’s gaming strategy.

Microsoft Executive Vice President for Gaming Phil Spencer announced he will retire after 38 years at Microsoft and 12 years leading the company's video game efforts. Asha Sharma, an executive currently in charge of Microsoft's CoreAI division, will take his place.

Xbox President Sarah Bond, who many assumed was being groomed as Spencer's eventual replacement, is also resigning from the company. Current Xbox Studios Head Matt Booty, meanwhile, is being promoted to Executive Vice President and Chief Content Officer and will work closely with Sharma.

In his departure note, Spencer said he told Microsoft CEO Satya Nadella last fall that he was "thinking about stepping back and starting the next chapter of my life." Spencer will remain at Microsoft "in an advisory role" through the summer to help Sharma during the transition, he wrote.

Audio Transcript

View original article

0:00/0:00