Microsoft gaming chief Phil Spencer retires after 38 years; Asha Sharma will lead
Insider Asha Sharma, who previously led AI product development at Microsoft, has been appointed executive vice president and CEO of Microsoft Gaming. Sharma said she would refocus on strengthening the Xbox ecosystem amid rising costs, slowing gaming revenues and intense competition from Sony’s PlayStation.
Microsoft said Friday that its gaming chief Phil Spencer is retiring after 38 years at the software maker, in a major leadership change. The company has named insider Asha Sharma as executive vice president and CEO of the gaming division. In his previous role, Sharma led product development for AI models and services at Microsoft.
Sharma said she would refocus on Xbox consoles, with the goal of “recommitting to our core Xbox fans and players.”
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Microsoft is struggling with gaming tariff-induced cost pressures, strong competition and uncertain consumer spending, which is driving up prices on Xbox hardware.
Last month, Microsoft reported that its gaming revenue fell nearly 9.5% in the December quarter, and it recorded an undisclosed impairment charge in the division.
Microsoft closed its $69 billion deal for “Call of Duty” maker Activision Blizzard in 2023, increasing its lead in the video-gaming market after heavy regulatory scrutiny.
The company’s gaming unit faces stiff competition from Sony’s PlayStation, particularly with regard to console market share and exclusive game offerings.
Spencer said he would remain in an advisory role until the summer to ensure a smooth handover.
Microsoft CEO Satya Nadella said, “Last year, Phil Spencer decided to retire from the company and since then we have been talking about succession planning.”
The company also said that Xbox president and chief operating officer Sarah Bond is leaving the company “to start a new chapter.”
The company said Matt Booty has assumed the role of executive vice president and chief content officer in the gaming division.
According to his LinkedIn page, Booty was previously president of game content and studios at Microsoft.
The company said Booty will report to Sharma, who previously worked at Meta and online grocery delivery firm Instacart.
DA Davidson analyst Gil Luria said, “Microsoft’s leadership change is appropriate as it comes at a time when the underlying technology of gaming is changing. As AI becomes a larger element in game development, Microsoft needs a new generation of leaders to manage this transition.”