Microsoft Gaming CEO Phil Spencer retires, Xbox president Sarah Bond resigns

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Phil Spencer is stepping down as CEO of Microsoft Gaming on February 23rd. Sarah Bond, currently president and COO of Xbox, is also leaving the company. Asha Sharma, who leads Microsoft’s CoreAI product team, will become the new CEO of Microsoft Gaming, and Matt Booty, head of Xbox Game Studios, will be promoted to chief content officer.

In an email to Microsoft employees, CEO Satya Nadella expressed his gratitude for Phil’s exceptional leadership and collaboration. Nadella highlighted Phil’s 38 years with Microsoft, including 12 years heading the Gaming division, and noted his significant impact on the company’s direction and operations.

Here are the full emails from Nadella, Spencer, Sharma, and Booty:

Microsoft CEO Satya Nadella

Gaming has always been a core part of Microsoft’s history. In fact, Flight Simulator came out even before Windows existed! And the technology that powers today’s advanced gaming – like ray tracing – has roots in Microsoft’s DirectX, which was first introduced in the 1990s.

We’re celebrating 25 years of Xbox, and the future looks incredibly promising! We now have over 500 million players enjoying Xbox every month, and we’re a leading game publisher on all platforms. We’re committed to continuing to improve our hardware, games, and community for players and creators alike.

I’m very optimistic about the future of gaming and its importance to our company. That’s why I’m pleased to announce that Asha Sharma will be our new Executive Vice President and CEO of Microsoft Gaming, reporting directly to me. Asha has a strong track record of building and expanding successful services used by billions of people, both during her two years at Microsoft and previously at Instacart and Meta. Her experience in platform development, creating sustainable business models, and managing large-scale global operations will be invaluable as we move our gaming business forward.

Okay, so big news from Microsoft Gaming! Matt Booty is stepping up to be Executive Vice President and Chief Content Officer – he’ll be reporting to Asha. Honestly, the guy gets games – he’s been passionate about them and the people who make them his whole career. Under his leadership, Microsoft Gaming has become HUGE, with almost 40 studios now! That includes Xbox, Bethesda, Activision Blizzard, and King, which means all my favorite franchises are under one roof – Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and even Fallout. It’s awesome to see so many great games being made!

Asha and Matt have the skills and experience we need to keep improving our gaming platform and content. As many of you know, Phil Spencer recently decided to retire after an incredible 38 years with Microsoft, including 12 years leading our gaming division. We’re very grateful for Phil’s outstanding leadership. He dramatically grew our business – nearly tripling its size – expanded our presence to PC, mobile, and cloud gaming, and guided key acquisitions like Activision Blizzard, ZeniMax, and Minecraft. He also fostered a stronger culture across our studios. I’ve always been impressed by Phil’s dedication to players, developers, and his team, and I deeply appreciate his guidance. He’ll be working with Asha to ensure a seamless transition.

Our studios are filled with incredibly talented people, and we have an unmatched global reach. I’m really looking forward to seizing the opportunities in front of us and shaping the future, all while keeping the needs of players and creators at the heart of what we do.

Let’s all congratulate Asha and Matt on their new positions, and also express our gratitude to Phil for his contributions to Microsoft and the wider industry.

Retiring Microsoft Gaming CEO Phil Spencer

Subject: A New Chapter for Microsoft Gaming

Starting as an intern at Microsoft in June 1988, I never could have predicted the amazing products I’d contribute to, the people we’d work with, or the incredible teams I’d be a part of. It’s been an unforgettable journey, and I’m incredibly grateful for the experience.

Last autumn, I let Satya know I was considering moving on to the next phase of my career. We immediately began planning a smooth transition, prioritizing stability and building on the strong work we’ve already done. Xbox is more than just a company; it’s a passionate community of players, developers, and teams dedicated to creating amazing experiences, and it deserves a carefully considered plan for the future.

Today is a great day for Microsoft Gaming as Asha Sharma officially becomes our CEO. I’m thrilled to welcome her to the team – I’ve had the pleasure of working with her recently and am very impressed with her curiosity, clear thinking, and dedication to our players and creators. We understand this is a significant change for everyone involved, and we’re focused on making this transition as seamless as possible. I’ll be staying on as an advisor this summer to help with the handover.

As a big fan, I’m really impressed with how well our game studios are doing! It’s awesome seeing the incredible games they’re building, and I have so much faith in the leadership team, especially Matt Booty. I was thrilled to hear about his well-deserved promotion to EVP and Chief Content Officer – he’s clearly doing a fantastic job!

Sarah Bond has decided to leave Microsoft to pursue a new opportunity. She’s played a vital role in Xbox’s recent success, helping to develop our platform, grow Game Pass and cloud gaming, and launch new hardware. We’re thankful for her contributions and wish her all the best in the future.

I want to express my sincere gratitude to everyone at Microsoft Gaming. I’ve learned a great deal from this incredible team and community, and I’ve been constantly inspired by your creativity, bravery, and dedication to players, creators, and each other.

I’m so proud of everything we’ve accomplished together over the past 25 years. I truly believe in all of you and the exciting future ahead, and I’ll be your biggest supporter and player as Xbox moves forward.

—Phil

XBL: P3

New Microsoft Gaming CEO Asha Sharma

Dear team,

Today I begin my role as CEO of Microsoft Gaming.

I feel two things at once: humility and urgency.

We approach this with humility, recognizing the incredible legacy this team has created over many years. But we also feel a sense of urgency, as the gaming world is evolving quickly, and we must act decisively and with a clear vision.

I’m joining a team built on the legacy of countless talented artists, engineers, designers, and creators who’ve brought happiness and connection to hundreds of millions of gamers. The quality of work here is incredible, and it’s strengthened by Xbox’s core belief that games have the power to bring people together and drive innovation in the industry.

We’re grateful for Phil’s guidance and the hard work of all the teams and partners who helped create what we have today. We’re now responsible for some of the most popular stories and characters in gaming, and we’re excited to connect players and creators in fresh, engaging ways.

My first job is simple: understand what makes this work and protect it.

That starts with three commitments.

First, great games.

Our priority is creating amazing games that players love. That means focusing on memorable characters, compelling stories, innovative gameplay, and top-notch quality. We’ll support our game development teams, invest in well-known franchises, and encourage fresh, ambitious concepts. We’re willing to take chances and explore new gaming areas and markets, always keeping player enjoyment at the heart of everything we do.

I’m pleased to announce Matt Booty’s promotion in recognition of his dedication. He’s a true expert in game development, understands the difficulties of creating fantastic games, has successfully led award-winning teams, and is highly respected by developers throughout the industry.

Second, the return of Xbox.

As a longtime Xbox fan, I’m really excited to hear they’re doubling down on us – the people who’ve been with Xbox for the past 25 years! It’s awesome that they also want to continue supporting the amazing developers who create the worlds and games we all love.

We’re reaffirming our dedication to Xbox, beginning with the console that defines us. It’s how we connect with our passionate players and the talented developers who create amazing games for Xbox.

Gaming isn’t tied to just one device anymore – it’s available everywhere. Xbox is expanding to PC, mobile, and the cloud, and we want the experience to be smooth, fast, and great for our players. We’re also working to make it easier for game developers to create games that everyone can enjoy, no matter where or how they play.

Third, future of play.

We are witnessing the reinvention of play.

To succeed now, we’ll explore fresh business approaches and find new ways to engage our audience by building on our strengths: beloved teams, characters, and worlds. However, we won’t simply exploit these established properties for profit. Instead, we’ll create a central platform and tools that allow both developers and players to create and share their own unique experiences.

As we move forward with new technologies like AI and explore different ways to support our creators, we’re committed to quality over quick gains. We believe games are fundamentally art, made by people, and we’ll continue to provide the best tools to help them create amazing experiences.

The next quarter-century will be defined by teams that take risks and create truly innovative things – projects others might shy away from – and then stick with them until they succeed. We’ve done this successfully before, and I’m committed to helping us do it again. I want us to recapture the bold, unconventional spirit that originally launched Xbox. This means constantly challenging how we do things, reviewing our methods, preserving what’s effective, and fearlessly changing what isn’t.

Thank you for welcoming me into this journey.

—Asha

Xbox Chief Content Officer Matt Booty

I was really thankful to receive Phil’s message. He’s consistently supported game developers and our teams, and I’ve learned a lot from his guidance over the years. His early support has made all of our games better. I also appreciate Satya’s continued dedication to gaming and his ability to see how it fits into the bigger picture for the company.

I’m thrilled to announce Asha as our new CEO! In our initial discussions, it was clear she’s deeply committed to creating fantastic games, understanding that’s key to our success. She’s inquisitive, seeks clear understanding, and prioritizes the needs of both players and our development teams. This approach is especially important right now, as the gaming industry is rapidly evolving in terms of player habits, game development processes, and business models.

We’re optimistic about the future. This company and its locations have successfully handled challenges for years, thanks to our adaptable and dedicated teams. We’re confident because we have a solid base of proven businesses, exciting new ventures, and strong customer interest in what we’re creating.

I’m dedicated to helping our existing teams and leaders succeed by giving them what they need to do great work. Just to reassure everyone, we aren’t planning any changes to how our studios are structured.

Thanks for everything you do for players and for each other.

—Matt

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2026-02-20 23:49