Phil Spencer is retiring as CEO of Microsoft Gaming, a move that sets in motion a significant leadership overhaul at the tech giant. The announcement, made public on Wednesday, February 20, 2026, was accompanied by the unexpected resignation of Xbox President Sarah Bond and the appointment of Asha Sharma as the new head of Microsoft Gaming.
Sharma, previously president of product development for Microsoft’s CoreAI division, will assume the role of CEO and executive vice president of Microsoft Gaming, effective Monday, February 23, according to sources familiar with the matter. Prior to joining Microsoft in 2024, Sharma held the position of chief operating officer at Instacart and served as vice president of product at Meta.
The departure of Bond, widely considered a potential successor to Spencer, has raised eyebrows within the industry. Bond had been with Microsoft since 2017, rising through the ranks to become president of Xbox in 2023. In a LinkedIn post, Bond explained her decision as a matter of timing and personal ambition. “I’m incredibly proud of what we’ve built together over the past eight-plus years,” she wrote. “When we announced our intention to acquire Activision Blizzard in 2022, I committed to helping lead Xbox through what would be a critical period of change. Over the past four years, we’ve navigated that moment together and positioned the business for what comes next.”
Bond emphasized the transformative nature of the current technological landscape and her desire to explore new opportunities. “We’re living through a transformative technological era that will shape the next generation of our industry, and I’m energized by what’s ahead,” she stated. She also expressed confidence in Sharma’s leadership, noting her “deep commitment to our players, developers, and brand” and her “strong track record of building and scaling platforms that the world uses.” Bond will remain with Microsoft as a Special Advisor to facilitate the transition.
Microsoft CEO Satya Nadella acknowledged Spencer’s nearly four decades with the company, stating, “Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.” Spencer, who joined Microsoft as an intern in 1988, will continue to serve as an advisor until later this year.
Alongside the CEO change, Matt Booty, head of Xbox Game Studios, has been promoted to Chief Content Officer. Booty will perform closely with Sharma in his new role. According to reports, Booty has assured teams that the organizational structure of Xbox’s studios will remain unchanged.
Microsoft Gaming encompasses a vast portfolio of development studios, including Activision, Bethesda, Blizzard, King, Mojang, and Xbox Game Studios, responsible for franchises such as “Call of Duty,” “Candy Crush,” “Diablo,” “The Elder Scrolls,” “Fallout,” “Halo,” “Minecraft,” and “World of Warcraft,” as well as the Xbox console platform and related services.
