Phil Spencer Reflects on Retirement From Microsoft After 38 Years

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In a surprising announcement, Phil Spencer is leaving Microsoft. After 38 years with the company – starting as an intern – he has stepped down from his role as CEO of Microsoft Gaming.

Spencer recently announced on Twitter that he’s retiring after 38 years at Microsoft. He says it’s rare to realize when one phase of life is ending, but he feels ready to start a new one and is grateful for the experiences he’s shared with so many people.

Spencer welcomed Asha Sharma, the former President of CoreAI at Microsoft, as his successor. He said she’s joining a fantastic team with a lot of talent and dedication to their players. He’s confident that her curiosity and commitment to building on their existing work will ensure Xbox communities continue to be well supported in the future.

When I started as an intern back in 1988, I had no idea what the future held. I’ve been incredibly fortunate to collaborate with so many dedicated and talented people – creators, partners, colleagues, and players – who have inspired me, taught me valuable lessons, and made my work truly fulfilling and exciting.

I’m so grateful for everyone who has been a part of this journey. This community means the world to me. Moving forward, I’ll continue to support the people and teams innovating in this field and stay connected with all of you. I look forward to seeing you all online!

Spencer has worked at the company for many years, but he became a key leader in 2014 when he took charge of Xbox Game Studios. He was responsible for setting the direction of Xbox, aiming to rebuild public trust after the Xbox One’s initial launch was poorly received under the leadership of Don Mattrick.

He was instrumental in acquiring several game studios, like Obsidian, inXile, Playground Games, Double Fine, and Ninja Theory, and later expanded to include publishers such as Bethesda and Activision. He also championed initiatives like Game Pass and releasing Xbox-exclusive games on platforms like PlayStation, most recently with Avowed on PS5. Beyond that, he was a key advocate for letting players enjoy older Xbox and Xbox 360 games, and he helped create the Xbox Cloud Gaming service we use today.

Spencer has definitely faced criticism, particularly after decisions like closing studios, laying off employees, and releasing unsuccessful games such as Redfall. Rising Game Pass prices and decreasing sales of Xbox consoles have also drawn attention. Despite these challenges, his time leading Xbox has been remarkable, and we’re eager to see what the future holds for the brand.

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2026-02-22 20:11