Phil Spencer Is Retiring, Xbox President Sarah Bond Is Leaving, And Microsoft's CoreAI Head Is New CEO Of Microsoft Gaming

[ad_1] Microsoft Gaming CEO Phil Spencer is retiring, and Xbox president Sarah Bond, lengthy thought of the individual to at some point maintain Spencer's job, has resigned from the corporate, as reported by IGN and later confirmed by an official Microsoft announcement. The president of Microsoft's CoreAI product, Asha Sharma, will now additionally work in Spencer's former place as the brand new Microsoft Gaming CEO. As a part of this large shake-up, Xbox Recreation Studios head Matt Booty has been promoted to Chief Content material Officer and can work carefully with Sharma inside Microsoft Gaming.

Sharma joined Microsoft in 2024 as a part of the corporate's AI and software program improvement workforce, and labored because the Chief Working Officer of Instacart and because the Vice President of Product at Meta previous to that. It is vital to notice that Microsoft has an AI division and CoreAI division – the previous is extra centered on AI analysis and improvement (assume Copilot), whereas the latter is an AI-first platform for instruments, app stacks, and extra. As the brand new Microsoft Gaming CEO, Sharma will oversee an unlimited array of studios and video games starting from Activision's Name of Responsibility umbrella, Blizzard Leisure's Overwatch, World of Warcraft, and Diablo groups, King's cell Sweet Crush empire, Mojang and that workforce's ongoing work on Minecraft, and naturally, the core Xbox Recreation Studios, which incorporates Fable and Forza Horizon developer Playground Video games, Halo: Marketing campaign Advanced's Halo Studios, Obisidian Leisure, which launched The Outer Worlds 2 final October, and extra.

Spencer's departure comes after serving because the Head of Xbox (and later Microsoft Gaming CEO) for greater than a decade, becoming a member of the workforce in 2014, although he had labored at Microsoft since 1988, starting his profession there as an intern. Spencer joined at a tense time for Xbox in 2014, roughly 5 months after Microsoft launched the Xbox One, which by all accounts, launched in a tough state as a result of non-optional inclusion of a refreshed Kinect, an emphasis on dwelling and TV leisure (over gaming, in some situations), and DRM-related controversies earlier than the console's launch; Xbox reversed course on its DRM necessities previous to the launch of the Xbox One.

As Head of Xbox, Spencer shortly set to work garnering good will for the once-favorite console of many players with strikes like backward compatibility; an emphasis on Xbox Recreation Move with its regular stream of day one releases; explosive E3 conferences that featured the likes of Keanu Reeves; numerous acquisitions reminiscent of Microsoft's $69 billion buy of Activision Blizzard and the corporate's acquisition of Fallout and Elder Scrolls maker Bethesda for $7.5 billion, amongst others (although arguably, these acquisitions did not precisely present good will for the model); and the Xbox Play Wherever initiative as a part of its Xbox Collection X/S console era, which built-in Microsoft's gaming enterprise extra carefully with PC. Below Spencer's management as Microsoft Gaming CEO, we additionally noticed Xbox-exclusive titles launch on PlayStation 5, like Sea of Thieves, Indiana Jones and The Nice Circle, Forza Horizon 5, and even upcoming video games like Halo: Marketing campaign Advanced.

Bond, who was promoted to President of Xbox in 2022 alongside Spencer's promotion to Microsoft Gaming CEO, has labored in Xbox since 2017. She started her profession at Xbox because the Company Vice President of Enterprise Growth and Partnerships, was then promoted to Company Vice President of Recreation Creator Expertise and Ecosystem, and at last, grew to become President of Xbox.

In 2022, when Bond was promoted to President of Xbox and Spencer to Microsoft Gaming CEO, Matt Booty was named President of Recreation Content material and Studios, a place that put him in shut communication with the greater than 40 studios underneath the Xbox Recreation Studios umbrella. That is doubtless the explanation his new place as Chief Content material Officer will reportedly have him working carefully with Sharma, who doubtless doesn't have as wide-ranging or as knowledgeable an method to Xbox's secure of studios and video games comparatively.

Xbox has had a busy 2026 thus far, even outdoors of this management shake-up. The corporate held a Developer Direct showcase final month, the place it revealed launch dates and gameplay for upcoming first-party titles like Fable and Forza Horizon 6, together with the debut of Double Tremendous Productions' Kiln and the launch window for Recreation Freak's Beast of Reincarnation. Earlier this week, on February 17, Xbox's first-person fantasy RPG Avowed launched on PS5 after roughly a yr of Xbox and PC exclusivity. Looking forward to the remainder of 2026, Xbox is launching Forza Horizon 6 on Xbox Collection X/S and PC on Might 19 (and PS5 later this yr), Kiln this Spring, its extremely anticipated Fable reboot in Autumn, and Halo: Marketing campaign Advanced someday this yr. Plus, Xbox, like PlayStation 5 and PC, will act as a third-party console for enormous releases like Grand Theft Auto VI in November and extra.

Notably, Microsoft is celebrating 25 years of Xbox in 2026; this shake-up is an fascinating wrinkle in what was purported to be a banner yr for the corporate.

Transcriptions of the emails Spencer, Booty, Sharma, and Nadella despatched to workers have been posted publicly by Microsoft and will be learn beneath:

Phil Spencer's E mail To Microsoft Employees

Retiring Microsoft Gaming CEO

Once I walked by way of Microsoft’s doorways as an intern in June of 1988, I may by no means have imagined the merchandise I’d assist construct, the gamers and prospects we’d serve, or the extraordinary groups I’d be fortunate sufficient to affix. It’s been an epic trip and really the privilege of a lifetime.

Final fall, I shared with Satya that I used to be excited about stepping again and beginning the subsequent chapter of my life. From that second, we aligned on approaching this transition with intention, guaranteeing stability, and strengthening the muse we’ve constructed. Xbox has at all times been greater than a enterprise. It’s a vibrant neighborhood of gamers, creators, and groups who care deeply about what we construct and the way we construct it. And it deserves a considerate, deliberate plan for the street forward.

Immediately marks an thrilling new chapter for Microsoft Gaming as Asha Sharma steps into the position of CEO, and I wish to be the primary to welcome her to this unbelievable workforce. Working along with her over the previous a number of months has given me large confidence. She brings real curiosity, readability and a deep dedication to understanding gamers, creators, and the selections that form our future. We all know this is a vital second for our followers, companions, and workforce, and we’re dedicated to getting it proper. I’ll stay in an advisory position by way of the summer time to assist a easy handoff.

I’m additionally grateful for the power of our studios group. Matt Booty and our studios groups proceed to construct an unbelievable portfolio, and I've full confidence within the management and inventive momentum throughout our international studios. I wish to congratulate Matt on his promotion to EVP and Chief Content material Officer.

As a part of this transition, Sarah Bond has determined to go away Microsoft to start a brand new chapter. Sarah has been instrumental throughout a defining interval for Xbox, shaping our platform technique, increasing Recreation Move and cloud gaming, supporting new {hardware} launches, and guiding a few of the most important moments in our historical past. I’m grateful for her partnership and the affect she’s had, and I want her the perfect in what comes subsequent.

Most of all, to everybody in Microsoft Gaming, I wish to say “thanks”. I’ve discovered a lot from this workforce and neighborhood, grown alongside you, and been regularly impressed by the creativity, braveness, and care you convey to gamers, creators, and to 1 one other day by day.

I’m extremely happy with what we’ve constructed collectively over the past 25 years, and I've full confidence in all of you and within the alternatives forward. I’ll be cheering you on on this subsequent chapter as Xbox’s proudest fan and participant.

Matt Booty's E mail To Microsoft Employees

Microsoft Chief Content material Officer Matt Booty

I learn Phil’s notice with a lot gratitude. He has been a gentle champion for sport creators and our studio groups, and I’ve discovered a lot from his management through the years. All our video games have benefited from his foundational assist. I’m additionally grateful to Satya for his ongoing dedication to gaming and holding a imaginative and prescient of the way it can join again to the bigger firm.

Trying ahead, I’m excited to accomplice with Asha as our subsequent CEO. Our first conversations centered on her dedication to creating nice video games and the position that performs in our total success. She asks questions, pushes for readability, and desires our selections grounded in participant and developer wants. That mindset issues because the trade round us is altering shortly: how gamers have interaction, how video games are made, and the way enterprise fashions and platforms evolve.

Now we have good causes to consider in what’s forward. This group and its franchises have navigated change for many years, and our power comes from groups who know find out how to adapt and preserve delivering. That confidence is grounded in a robust pipeline of established franchises, new bets we consider in, and clear participant demand for what we're constructing.

My focus is on supporting the groups and leaders we've got in place and creating the circumstances for them to do their greatest work. To be clear, there aren't any organizational adjustments underway for our studios.

Thanks for all the things you do for gamers and for one another.

Asha Sharma's E mail To Microsoft Employees

Microsoft Gaming CEO Asha Sharma

Immediately I start my position as CEO of Microsoft Gaming.

I really feel two issues directly: humility and urgency. Humility as a result of this workforce has constructed one thing extraordinary over many years. Urgency as a result of gaming is in a interval of speedy change, and we have to transfer with readability and conviction.

I'm getting into work formed by generations of artists, engineers, designers, writers, musicians, operators and extra who create worlds which have introduced pleasure and deep private that means to tons of of thousands and thousands of gamers. The extent of craft right here is phenomenal, and it's amplified by Xbox, which was based within the perception that the ability of video games join folks and push the trade ahead.

Thanks to Phil for his management, and to each studio, platform, and operations workforce that constructed this basis. We're stewards of a few of the most liked tales and characters in leisure and produce gamers and creators collectively across the enjoyable and neighborhood of gaming in totally new methods.

My first job is straightforward: perceive what makes this work and defend it. That begins with three commitments.

First, nice video games.

Every little thing begins right here. We should have nice video games beloved by gamers earlier than we do something. Unforgettable characters, tales that make us really feel, progressive sport play, and inventive excellence. We'll empower our studios, spend money on iconic franchises, and again daring new concepts. We'll take dangers. We'll enter new classes and markets the place we are able to add actual worth, grounded in what gamers care about most. I promoted Matt Booty in honor of this dedication. He understands the craft and the challenges of constructing nice video games, has led groups that ship award-winning work, and has earned the belief of sport builders throughout the trade.

Second, the return of Xbox.

We'll recommit to our core Xbox followers and gamers, those that have invested with us for the previous 25 years, and to the builders who construct the expansive universes and experiences which are embraced by gamers internationally. We'll rejoice our roots with a renewed dedication to Xbox beginning with console which has formed who we're. It connects us to the gamers and followers who spend money on Xbox, and to the builders who construct formidable experiences for it. Gaming now lives throughout units, not throughout the limits of any single piece of {hardware}. As we develop throughout PC, cell, and cloud, Xbox ought to really feel seamless, instantaneous, and worthy of the communities we serve. We'll break down boundaries so builders can construct as soon as and attain gamers all over the place with out compromise.

Third, way forward for play.

We're witnessing the reinvention of play. To satisfy the second, we'll invent new enterprise fashions and new methods to play by leaning into what we have already got: iconic groups, characters, and worlds that individuals love. However we won't deal with these worlds as static IP to take advantage of and monetize. We'll construct a shared platform and instruments that empower builders and gamers to create and share their very own tales. As monetization and AI evolve and affect this future, we won't chase short-term effectivity or flood our ecosystem with soulless AI slop. Video games are and at all times can be artwork, crafted by people, and created with essentially the most progressive know-how offered by us.

The following 25 years belong to the groups who dare to construct one thing shocking, one thing nobody else is prepared to attempt, and have the persistence to see it by way of. Now we have completed this earlier than, and I'm right here to assist us do it once more. I wish to return to the renegade spirit that constructed Xbox within the first place. It'll require us to relentlessly query all the things, revisit processes, defend what works, and be courageous sufficient to vary what doesn't.

Thanks for welcoming me into this journey.

Satya Nadella's E mail To Microsoft Employees

Microsoft CEO Satya Nadella

Gaming has been a part of Microsoft from the beginning. Flight Simulator shipped earlier than Home windows, and you'll virtually ray‑hint a line from DirectX within the ’90s to the accelerated‑compute period we’re in immediately.

As we rejoice Xbox’s twenty fifth yr, the chance and innovation agenda in entrance of us is expansive. Immediately we attain over 500 million month-to-month lively customers, are a prime writer throughout all platforms, and proceed to innovate throughout gaming {hardware}, content material and neighborhood, in service of creators and gamers all over the place.

I'm lengthy on gaming and its position on the middle of our shopper ambition, and as we glance forward, I’m excited to share that Asha Sharma will grow to be Government Vice President and CEO, Microsoft Gaming, reporting to me. During the last two years at Microsoft, and beforehand as Chief Working Officer at Instacart and a Vice President at Meta, Asha has helped construct and scale companies that attain billions of individuals and assist thriving shopper and developer ecosystems. She brings deep expertise constructing and rising platforms, aligning enterprise fashions to long-term worth, and working at international scale, which can be essential in main our gaming enterprise into its subsequent period of development.

Matt Booty will grow to be Government Vice President and Chief Content material Officer, reporting to Asha. Matt’s profession displays a lifelong dedication to video games and to the individuals who make them. Below his management, Microsoft Gaming has grown to span almost 40 studios throughout Xbox, Bethesda, Activision Blizzard, and King, that are dwelling to beloved franchises together with Halo, The Elder Scrolls, Name of Responsibility, World of Warcraft, Diablo, Sweet Crush, and Fallout.

Collectively, Asha and Matt have the suitable mixture of shopper product management and gaming depth to push our platform innovation and content material pipeline ahead. Final yr, Phil Spencer made the choice to retire from the corporate, and since then we’ve been speaking about succession planning. I wish to thank Phil for his extraordinary management and partnership. Over 38 years at Microsoft, together with 12 years main Gaming, Phil helped rework what we do and the way we do it. He expanded our attain throughout PC, cell, and cloud; almost tripled the scale of the enterprise; helped form our technique by way of the acquisitions of Activision Blizzard, ZeniMax, and Minecraft; and strengthened our tradition throughout our studios and platforms. I’ve lengthy admired Phil’s unwavering dedication to gamers, creators, and his workforce, and I'm personally grateful for his management and counsel. He'll proceed working carefully with Asha to make sure a easy transition.

Now we have extraordinary inventive expertise throughout our studios and a worldwide platform that's second to none. I’m excited for a way we'll seize the chance forward and outline what comes subsequent, whereas staying grounded in what gamers and creators worth.

Please be part of me in congratulating Asha and Matt on their new roles, and in thanking Phil for all the things he has completed for Microsoft and for our trade.