Microsoft gaming chief Phil Spencer retires, replaced by ex-Instacart exec Asha Sharma
Context:
Phil Spencer is retiring from Microsoft after a long tenure as head of gaming, with Asha Sharma named as his successor to lead the unit. The move comes as Microsoft contends with challenges in the Xbox business, including a roughly 10% drop in gaming revenue for the December quarter amid efforts tied to a $75 billion bet on Activision Blizzard. Spencer had steered a rapid expansion of gaming through acquisitions and platform moves, while facing competition from Sony and Nintendo. Sharma’s arrival signals a shift toward AI-enabled product leadership and a continued emphasis on core Xbox fans and developers. The outlook centers on rebuilding momentum and content pipelines under new leadership while refining monetization strategies.
Dive Deeper:
Spencer’s retirement marks the end of a 38-year era at Microsoft, with a leadership transition announced by CEO Satya Nadella as part of ongoing succession planning.
Asha Sharma, who joined Microsoft in 2024 from Instacart, will take over as CEO of gaming and report to Nadella, bringing experience from Microsoft’s Core AI and prior roles at Meta.
Microsoft posted a roughly 10% year-over-year decline in gaming revenue for the December quarter, highlighting ongoing pressure in the sector despite overall company growth.
The company has previously pursued a $75 billion expansion in gaming via the Activision Blizzard acquisition and has experimented with cloud-enabled Call of Duty titles, signaling a shift toward new distribution models.
Sharma emphasized a return to fundamentals for Xbox, focusing on fans and developers, while integrating AI developments without compromising the artistry and originality of games.
Matt Booty, previously head of gaming studios, will report to Sharma as executive vice president and chief content officer, indicating a leadership realignment across the content and development functions.
Beyond leadership, Nadella noted the departure of Sarah Bond from her role as president and operating chief of the Xbox unit, signaling broader organizational changes.