Microsoft's gaming division has undergone significant leadership changes. Phil Spencer will step down as CEO of Microsoft Gaming on February 23, 2026. Xbox President Sarah Bond is also leaving the company. The new head of the division is Asha Sharma, who previously led the CoreAI initiative at Microsoft. The successor for the role of Xbox President has not yet been announced.

Sharma's appointment has sparked discussions within the professional community, as her background is primarily in artificial intelligence development. Some users have expressed concerns about the potential for generative AI to play a larger role in the company's future strategy.

Since 2014, Phil Spencer has been the public face of Xbox, guiding the brand through a strategic overhaul after the launch of Xbox One. Under his leadership, services like Xbox Game Pass were launched and significantly expanded.

With Sharma at the helm, Microsoft's gaming division may be entering a new phase of development. In her first interview as head of Microsoft Gaming, Sharma emphasized that artificial intelligence should drive innovation rather than produce generic content. She stressed that quality and unique creative vision must remain at the heart of game development.

Sharma also stated her intention to maintain Xbox's focus on the console market while continuing a multi-platform strategy for PC, mobile devices, and cloud services. To strengthen community trust, she will need to put these plans into action.

Phil Spencer will remain with the company as an advisor until the summer of 2026 to support the transition period.