Microsoft Xbox leadership overhaul: Asha Sharma named CEO as Phil Spencer steps down
Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, in a leadership change that reshapes the top of microsoft xbox and follows Phil Spencer’s decision to retire, company executives said in a Feb. 20, 2026 communication to staff.
Microsoft Xbox leadership shifts
The announcement names Matt Booty as Executive Vice President and Chief Content Officer, reporting to Sharma, and notes that Phil Spencer has chosen to retire after a long tenure at Microsoft. The Microsoft communication said Spencer spent 38 years at the company and led Gaming for 12 years, helping expand the business through major studio acquisitions and platform work. It added that Spencer "will continue working closely with Asha to ensure a smooth transition. " The message also marked Xbox’s 25th year and said the platform reaches over 500 million monthly active users.
What Asha Sharma brings to the role
Sharma joins the leadership team after two years at Microsoft and earlier roles that included Chief Operating Officer at Instacart and a Vice President position at Meta. Other context in the company’s staff communications and industry reporting identified her as the former head of Microsoft’s CoreAI product who joined Microsoft in 2024. The Microsoft note highlighted her experience building large consumer services and platforms and said those skills will be important as she leads gaming hardware, content, and community efforts.
Spencer, Bond and the transition ahead
The staffing changes include departures beyond Spencer: Xbox president Sarah Bond has resigned from her role, and Matt Booty’s promotion places him over a content portfolio that spans nearly 40 studios named in the company message. The corporate note cited franchises across those studios, listing Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout as part of the group Booty will help steward. The communication thanked Spencer for his leadership and asked staff to congratulate Sharma and Booty on their new roles.
The Microsoft message framed the move as a succession planned over several months: "Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life, " Spencer wrote in the internal note quoted by leadership, and the company confirmed the handoff will be managed to preserve stability. The next confirmed step is the leadership transition itself, with Asha Sharma and Matt Booty assuming their new responsibilities and Spencer remaining involved to support a smooth handoff.
