Phil Spencer Retires, as New Xbox Boss Is Named
After close to 40 years at Microsoft, Xbox brand boss Phil Spencer is retiring, and it’s set to take effect this coming week, on February 23.
The news comes from leaked sources familiar with the situation, as an internal email has been sent to Microsoft staff today informing them of the leadership changes about to take effect at the software giant’s gaming division.
It’s not just Spencer that’s departing Microsoft, as Xbox President Sarah Bond, who was pegged to be Spencer’s successor, has resigned.
Microsoft’s Xbox Division Sees Major Shake-Up
With Sarah Bond’s departure, the new CEO of Microsoft Gaming will be Asha Sharma, currently the President of Microsoft’s CoreAI. Xbox Game Studios boss Matt Booty meanwhile is being promoted to Chief Content Officer and will work closely with Sharma.
Microsoft CEO Satya Nadella has penned a later that was sent to Microsoft staff that read (via IGN):
Gaming has been part of Microsoft from the start. Flight Simulator shipped before Windows, and you can practically ray‑trace a line from DirectX in the ’90s to the accelerated‑compute era we’re in today.
As we celebrate Xbox’s 25th year, the opportunity and innovation agenda in front of us is expansive. Today we reach over 500 million monthly active users, are a top publisher across all platforms, and continue to innovate across gaming hardware, content and community, in service of creators and players everywhere.
I am long on gaming and its role at the center of our consumer ambition, and as we look ahead, I’m excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, reporting to me. Over the last two years at Microsoft, and previously as Chief Operating Officer at Instacart and a Vice President at Meta, Asha has helped build and scale services that reach billions of people and support thriving consumer and developer ecosystems. She brings deep experience building and growing platforms, aligning business models to long-term value, and operating at global scale, which will be critical in leading our gaming business into its next era of growth.
Matt Booty will become Executive Vice President and Chief Content Officer, reporting to Asha. Matt’s career reflects a lifelong commitment to games and to the people who make them. Under his leadership, Microsoft Gaming has grown to span nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King, which are home to beloved franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
Together, Asha and Matt have the right combination of consumer product leadership and gaming depth to push our platform innovation and content pipeline forward. Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning. I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it. He expanded our reach across PC, mobile, and cloud; nearly tripled the size of the business; helped shape our strategy through the acquisitions of Activision Blizzard, ZeniMax, and Minecraft; and strengthened our culture across our studios and platforms. I’ve long admired Phil’s unwavering commitment to players, creators, and his team, and I am personally grateful for his leadership and counsel. He will continue working closely with Asha to ensure a smooth transition.
We have extraordinary creative talent across our studios and a global platform that is second to none. I’m excited for how we will capture the opportunity ahead and define what comes next, while staying grounded in what players and creators value.
Please join me in congratulating Asha and Matt on their new roles, and in thanking Phil for everything he has done for Microsoft and for our industry
Phil Spencer also penned a letter as well, which is available below.
Subject: A New Chapter for Microsoft Gaming
When I walked through Microsoft’s doors as an intern in June of 1988, I could never have imagined the products I’d help build, the players and customers we’d serve, or the extraordinary teams I’d be lucky enough to join. It’s been an epic ride and truly the privilege of a lifetime.
Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.
Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff.
I’m also grateful for the strength of our studios organization. Matt Booty and our studios teams continue to build an incredible portfolio, and I have full confidence in the leadership and creative momentum across our global studios. I want to congratulate Matt on his promotion to EVP and Chief Content Officer.
As part of this transition, Sarah Bond has decided to leave Microsoft to begin a new chapter. Sarah has been instrumental during a defining period for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in our history. I’m grateful for her partnership and the impact she’s had, and I wish her the very best in what comes next.
Most of all, to everyone in Microsoft Gaming, I want to say “thank you”. I’ve learned so much from this team and community, grown alongside you, and been continually inspired by the creativity, courage, and care you bring to players, creators, and to one another every day.
I’m incredibly proud of what we’ve built together over the last 25 years, and I have complete confidence in all of you and in the opportunities ahead. I’ll be cheering you on in this next chapter as Xbox’s proudest fan and player.
Phil
XBL: P3
It’s a sad day for Xbox fans who have seen some challenging times hit Microsoft’s gaming division when it comes to console exclusivity and market share dominance.
This means that the next Xbox, rumored for release in 2027, will be the first Xbox console without Spencer in some capacity.
We here at MP1st wish nothing but the best for Spencer wherever his next journey takes him.
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