Asha Sharma Named CEO of Microsoft Gaming, Phil Spencer Retires
Microsoft has announced a significant leadership change within its gaming division, with Asha Sharma appointed as the fresh Executive Vice President and CEO of Microsoft Gaming. This transition follows the retirement of Phil Spencer after 38 years with the company. The changes were communicated to employees on February 20, 2026, by Microsoft Chairman and CEO Satya Nadella.
Asha Sharma’s Background and Vision
Asha Sharma joined Microsoft in 2024, bringing a wealth of experience from previous roles at Instacart, where she served as Chief Operating Officer, and Meta Platforms Inc. Her expertise in building and scaling consumer services that reach billions of users will be crucial as she leads Microsoft Gaming into its next phase of growth. Sharma’s focus will be on innovating business models and play experiences, leveraging Microsoft’s existing assets, including iconic teams, characters, and worlds.
Phil Spencer’s Legacy and Retirement
Phil Spencer’s departure marks the end of an era for Xbox. He served as CEO of Microsoft Gaming for 12 years, nearly tripling the size of the business during a period of significant evolution in the video game industry. Under his leadership, Microsoft successfully navigated the transition from packaged software to subscription services and digital downloads, and oversaw major acquisitions including Activision Blizzard, ZeniMax, and Minecraft. Spencer expressed his gratitude for his 38 years at Microsoft, calling it “an epic ride and truly the privilege of a lifetime.”
Leadership Restructuring
Alongside Sharma’s appointment, Matt Booty will assume the role of Executive Vice President and Chief Content Officer, reporting to Sharma. Booty’s leadership has been instrumental in expanding Microsoft Gaming’s portfolio to include nearly 40 studios encompassing franchises like Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout. Sarah Bond is also leaving Microsoft to pursue new opportunities.
Microsoft’s Gaming Outlook
Microsoft Gaming currently reaches over 500 million monthly active users and remains a top publisher across all platforms. Despite recent challenges, including a nearly 10% decline in Xbox revenue in the December quarter, Satya Nadella expressed his confidence in the future of gaming, stating, “I am long on gaming and its role at the center of our consumer ambition.” The company remains committed to the console market alongside its cloud gaming initiatives.
Asha Sharma is an Indian-origin AI executive.