Asha Sharma named Microsoft Gaming CEO as Phil Spencer steps back
On Feb 20, 2026, Satya Nadella announced that asha sharma will become Executive Vice President and CEO, Microsoft Gaming, a move that places a consumer-products leader in charge of a business that reaches over 500 million monthly active users and marks Xbox’s 25th year.
Asha Sharma takes the helm
Nadella said asha sharma will report directly to him, citing her two years at the company and prior roles as Chief Operating Officer at Instacart and a Vice President at Meta. The announcement frames her experience building and scaling services that reach billions as central to leading Microsoft’s gaming business into “its next era of growth. ”
Matt Booty promoted to Chief Content Officer
Matt Booty will become Executive Vice President and Chief Content Officer and will report to Asha Sharma. Nadella highlighted that under Booty’s leadership Microsoft Gaming grew to span nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King, and that those studios house franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
Phil Spencer’s retirement and transition plan
Phil Spencer, who joined Microsoft as an intern in June of 1988 and led Gaming for 12 years, made the decision to retire last fall after 38 years at the company. Nadella thanked Spencer for his leadership, saying he helped nearly triple the size of the business and guided major acquisitions that shaped Microsoft’s gaming strategy.
IGN’s coverage of the transition noted Spencer’s retirement is effective on Monday, February 23, and Spencer has said he will remain in an advisory role through the summer to support a smooth handoff. Nadella’s memo echoed that Spencer will continue working closely with Asha to ensure a smooth transition.
The leadership changes come as Microsoft emphasizes both platform innovation and content investment: Nadella wrote that the company is a top publisher across platforms and continues to innovate across gaming hardware, content, and community while serving creators and players worldwide.
The company singled out concrete priorities tied to content and platform scale, and promoted Booty to underline a focus on studio leadership and game development. With nearly 40 studios under the gaming umbrella and iconic franchises listed by name, the reorganization centers creative stewardship under Booty while placing platform and product leadership with Asha Sharma.
The next confirmed milestones in the transition are Spencer’s retirement effective February 23 and his advisory role through the summer to support the handoff to Asha Sharma. Executives said they will work together during the coming months to complete the succession and stabilize leadership across studios and platforms.
