Phil Spencer Leaving Xbox: News & Reaction

Phil Spencer, the long-time head of Microsoft Gaming, is retiring after a nearly four-decade career with the technology giant, the company announced Friday. The departure marks a significant shift in leadership for the Xbox maker as it navigates an increasingly competitive gaming landscape.

Spencer, who has led the Xbox division for 12 years and been with Microsoft since 1988, will transition to an advisory role later this year, according to a statement released by the company. His retirement follows a period of substantial expansion for Microsoft’s gaming portfolio, including the acquisition of Activision Blizzard, Bethesda, and King.

Asha Sharma, currently president of product development for Microsoft’s CoreAI division, will succeed Spencer as the new chief executive and executive vice president of Microsoft Gaming. Sharma joined Microsoft in 2024, bringing with her prior experience as chief operating officer of Instacart and vice president of product at Meta.

The leadership reshuffle extends beyond the CEO position. Sarah Bond, currently president of Xbox, will also be leaving the company. Matt Booty has been promoted to chief content officer, overseeing the vast array of game development studios under the Microsoft Gaming umbrella, which includes franchises such as “Call of Duty,” “Candy Crush,” “Diablo,” “The Elder Scrolls,” “Fallout,” “Halo,” “Minecraft,” and “World of Warcraft.”

Microsoft Gaming encompasses nearly 40 development studios, a testament to the company’s aggressive investment in the gaming industry. The changes come as Microsoft continues to integrate Activision Blizzard following its acquisition, a deal that faced regulatory hurdles before being finalized.