Phil Spencer, the head of Xbox since the beginning of the Xbox One, is leaving Microsoft as part of a broader company restructuring. He’s been with Microsoft since the late 1980s and announced to employees today that his last day will be February 23rd. The news was unexpected and is causing changes among other leaders at Xbox.
Phil Spencer told employees today (according to IGN) that he discussed his plans to move on to the next chapter of his life with Microsoft CEO Satya Nadella last year. Since then, he’s been working to step down from his position and ensure a smooth transition with new leadership. Asha Sharma, currently President of CoreAI at Microsoft, will be taking over the role.
In an email, Spencer explained that he told Satya last fall he was considering moving on to a new phase of his career. They both agreed to plan this change carefully to ensure a smooth transition and build on the success they’d already achieved. Spencer emphasized that Xbox is more than just a company – it’s a passionate community of players, developers, and employees who are dedicated to creating great experiences, and that deserves a well-considered plan for the future.
Additional Leadership Changes at Xbox
Starting next week, Asha Sharma will be the new head of Xbox, and there will be other changes in leadership. Most notably, Xbox President Sarah Bond is leaving Microsoft entirely. Many expected Bond to take over from current leader Phil Spencer, but she will no longer be involved with Xbox’s leadership.
Matt Booty, who has led Xbox Game Studios for many years, is getting a promotion. He’ll now be Chief Content Officer for Xbox and will work closely with Phil Spencer to revitalize the Xbox brand.
Spencer’s Legacy at Xbox
Phil Spencer is leaving Xbox with a complex but ultimately positive impact. He took over in 2014 when the brand was struggling, and over the years, he led several key initiatives that reconnected Xbox with its fans. He’s best known for bringing back older game support, expanding the number of game development studios owned by Xbox, and launching the popular Xbox Game Pass subscription service in 2017.
Recently, Phil Spencer has faced a lot of criticism from the Xbox community. Microsoft’s purchase of Activision unexpectedly led Xbox to start publishing games for other platforms, meaning previously exclusive franchises like Halo and Gears of War are now available elsewhere. Adding to this, Microsoft’s recent marketing approach hasn’t emphasized the importance of Xbox hardware, leading to a significant drop in sales for the Xbox Series X and S. These factors, combined with a misjudgment of how Game Pass would affect player spending habits, have created the current challenges for Microsoft.
Phil Spencer will probably be remembered as a positive force for Xbox overall. He genuinely cared about the Xbox community and consistently tried to deliver what players wanted. While not every choice he made was perfect, he’s been a hugely important leader in gaming for the last ten years.
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2026-02-21 00:43