Inside Microsoft’s Major Xbox Leadership Shake-Up

Microsoft has named a new gaming CEO as it seeks to revitalize Xbox. After the anticipated retirement of Phil Spencer, Xbox’s leader, Sarah Bond, another prominent figure at Microsoft, also departed unexpectedly. Despite speculation that Bond might succeed Spencer, the role was assigned to Asha Sharma, a former Microsoft AI executive. Phil Spencer’s departure followed a challenging period marked by protracted acquisitions and a strategic pivot towards multiplatform gaming, moving away from Xbox exclusivity. Internal discussions about a potential successor intensified after Spencer announced his resignation, which was hastily revealed following media leaks. The transition was chaotic, with Xbox teams finding out through external channels. Notably, while Sarah Bond’s contributions in finalizing the Activision Blizzard acquisition were significant, internal communications around her departure were notably absent except in a memo by Spencer. Recent organizational changes under Bond, including strategic shifts towards cloud gaming and a de-emphasis on console hardware, faced internal resistance and mixed execution. Many employees reported relief at Bond’s departure, citing challenges working with her vision. With Asha Sharma at the helm, Microsoft aims to regain the “renegade spirit” that originally defined Xbox, despite concerns over Sharma’s lack of experience in the gaming industry. Sharma reassures against over-reliance on AI in gaming, affirming games’ creative essence. Her past roles at Instacart and Meta in user acquisition are seen as strengths in addressing Xbox’s recent market challenges. With Phil Spencer’s legacy of consumer-friendly practices and innovations like Game Pass, Sharma is tasked with shaping Xbox’s next 25 years, returning the brand to its foundational ambitions.