Original Xbox Console Designer Believes Microsoft Gaming’s New CEO Will Sunset the Division

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Following recent changes in leadership at Microsoft’s gaming division, one of the original Xbox creators has shared his thoughts on the new CEO, Asha Sharma from CoreAI. In an interview with GamesBeat, he suggested that Sharma was hired to eventually phase out the Xbox division entirely, likely in a slow and subtle manner.

Noting Microsoft’s significant investment in AI, Blackley explained that company teams not focused on this technology are being phased out. He likened the appointment of Microsoft Gaming CEO Phil Sharma to a doctor providing comfort care to a patient with a serious illness.

According to Blackley, Satya Nadella has heavily invested in the future of AI. As a result, areas like Xbox, which aren’t central to that AI focus, are being phased out, though the company doesn’t publicly state this. Blackley anticipates that the new Xbox CEO, Asha Sharma, will be responsible for managing this decline and gradually winding down the platform.

Blackley explained that it seems illogical to put someone in charge of a department without any prior experience or involvement in its daily work. He believes Sharma’s appointment is more understandable if you consider a broader, more conceptual approach to the situation.

It’s like asking why anyone would put a movie studio in charge of someone who doesn’t enjoy films, or a record label in the hands of someone who’s never been to a concert. It just doesn’t make sense, unless you’re looking at things in a very detached way. That’s what’s happening with AI – the focus on it causes leaders to view problems as abstract concepts, rather than real-world issues.

Blackley argues that Microsoft didn’t want someone overly enthusiastic about games leading the division, as that wouldn’t align with their overall strategy. He also points out that Microsoft’s strong focus on artificial intelligence doesn’t really fit with the artistic, creative process of making games.

He explained that it would have been surprising to see someone genuinely enthusiastic about games – and the idea of creators leading the game industry – in a key position. This is because it clashes with Microsoft’s current focus on using AI to empower its customers. This approach goes against the traditional idea of a single creative visionary, especially in art and games. Unlike Apple or Netflix, which rely on individual creators for content, games are Microsoft’s only business that truly centers around creating content.

It’s been suggested that Sarah Bond’s exit as Xbox president was linked to the negative reaction to the recent “This is an Xbox” ad campaign, but this hasn’t been officially confirmed. Bond has stated that she chose to leave the company, and she expressed her gratitude to both Spencer and Sharma.

Okay, so there’s been a lot going on with some people leaving Xbox, but I just heard from Matt Booty, the head of content, that they aren’t planning on restructuring anything. Basically, things should stay pretty much the same on the team side of things, which is a relief!

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2026-02-24 14:12