Asha Sharma has been named the new Executive Vice President and CEO of Microsoft Gaming, succeeding Phil Spencer, who is retiring after 38 years with the company. The appointment, announced Friday, marks a significant leadership shift for the Xbox division as it navigates a competitive landscape and increasing investment in artificial intelligence.
Sharma joins Microsoft Gaming from Microsoft CoreAI, where she led product development overseeing AI infrastructure, foundation models, and related toolchains. Prior to Microsoft, she held leadership positions at Instacart and Meta. Satya Nadella, Chairman and CEO of Microsoft, stated Sharma’s experience in scaling services reaching billions of users will be “critical in leading our gaming business into its next era of growth.”
The leadership restructuring similarly sees Matt Booty elevated to Executive Vice President and Chief Content Officer, reporting to Sharma. Booty’s career spans a lifelong commitment to gaming, and under his leadership, Microsoft Gaming has grown to encompass nearly 40 studios, including Xbox, Bethesda, Activision Blizzard, and King – the creators of franchises such as Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
Sharma outlined three core commitments in an internal memo: “great games,” “the return of Xbox,” and “the future of play.” She emphasized a renewed focus on the Xbox console and a commitment to its core fanbase. “We will empower our studios, invest in iconic franchises, and back bold new ideas,” Sharma stated, adding that the company will “grab risks” and explore new markets.
Addressing the growing influence of AI, Sharma signaled a cautious approach, stating the company would have “no tolerance for subpar AI” and would not prioritize short-term efficiency at the expense of artistic integrity. “Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us,” she said.
The leadership change occurs as Microsoft Gaming faces challenges including tariff-driven cost pressures and uncertain consumer spending. Sharma’s appointment signals a renewed focus on core gaming and long-term growth, aiming to reverse recent slides in market position.
Spencer’s departure follows 38 years at Microsoft, during which he became a prominent figure in the gaming industry. Sharma acknowledged his legacy, stating she has “deep respect” for his leadership.