Asha Sharma Takes the Helm at Xbox: Moon Studios CEO Urges a Return to Player Focus
Xbox has entered a new era with the retirement of Phil Spencer and the appointment of Asha Sharma as the new CEO of Microsoft Gaming. While Sharma has outlined a commitment to Xbox’s core fanbase, industry voices are offering guidance for the path forward. Thomas Mahler, CEO of Moon Studios, known for the critically acclaimed Ori series, has shared his perspective on the challenges and opportunities facing the new leadership.
Moon Studios CEO Weighs In
In a statement posted on X (formerly Twitter), Mahler acknowledged Microsoft’s early support of Moon Studios, stating that the studio might not have existed without it. However, he expressed a lack of envy for Sharma, predicting “incredibly difficult years” ahead. He characterized the role as “back-breaking” and “largely thankless” if approached with the intention of achieving true success. Source
The Question of Xbox’s Value
Mahler raised a critical question regarding the long-term viability of Xbox within Microsoft’s portfolio. Despite recent revenue declines in the gaming division, he questioned why Microsoft continues to invest in Xbox when other businesses, such as Azure, generate significantly higher revenue. He posits that the gaming division serves as a “multiplier” effect, citing the role gaming played in the success of Windows in 1995 and Bill Gates’ concern about the potential dominance of the PlayStation 2.
A History of Investment, A Lack of Blockbusters
Mahler drew a parallel between Sharma’s challenge and Steve Jobs’ turnaround of Apple, but quickly returned to a critique of Xbox’s current strategy. He argued that Xbox has pursued a strategy that “clearly hasn’t worked,” pointing to an $80 billion investment in studio acquisitions that has yet to yield a string of industry-defining titles. He also noted that Game Pass subscriptions remain around 30 million, falling short of previously leaked internal targets of 100 million, despite the addition of titles like Call of Duty. Source
Mahler’s Prescription for Success
Mahler’s advice echoes a long-standing sentiment within the Xbox community: prioritize player feedback, embrace innovation and relentlessly focus on game quality. He believes that Xbox needs to deliver “exceptional” titles that will attract players based on merit, rather than relying on acquisitions or subscription services.
Leadership Transition Details
Phil Spencer’s retirement follows a period of significant change at Microsoft, including the departures of Chris Young and Thomas Dohmke in 2025, and Charlie Bell’s shift to an individual contributor role. Source Asha Sharma, who joined Microsoft in 2024 from Instacart, will oversee all aspects of Microsoft Gaming, including Xbox, Bethesda, Activision Blizzard, and King. Matt Booty has been appointed as Xbox chief content officer, reporting to Sharma. Source Spencer’s last day is Monday, February 23, 2026.
The coming years will be pivotal for Xbox as Sharma navigates these challenges and charts a new course for the gaming division.