Microsoft has selected Asha Sharma to lead its gaming division, taking over from Phil Spencer, who is retiring after 38 years with the company. Sharma, formerly in charge of AI product development at Microsoft, now assumes the role of Executive Vice President and CEO of Microsoft Gaming. Prior to this, she served as Chief Operating Officer at Instacart and as a Vice President at Meta.
Expressing her gratitude, Sharma acknowledged the legacy left by the multitude of creative minds behind the worlds that have brought delight and significance to countless players. Spencer, who headed the division for 12 years and oversaw major acquisitions such as Activision Blizzard and ZeniMax, announced his retirement decision last fall. He will provide advisory support during the transition period until summer.
In a tribute to Spencer, Microsoft CEO Satya Nadella praised his exceptional leadership and collaboration over the years. As part of the restructuring, Matt Booty has been promoted to Executive Vice President and Chief Content Officer, reporting directly to Sharma. Booty previously managed game content and studios. Meanwhile, Sarah Bond, President and Chief Operating Officer at Xbox, is departing from the company.
Sharma has outlined three key priorities for the division: delivering exceptional games, reinforcing focus on the Xbox console, and shaping the future of gaming experiences. Emphasizing a renewed commitment to loyal Xbox fans and players who have been part of the journey for the past 25 years, she aims to steer the division towards success.
The leadership transition occurs at a time when Microsoft Gaming confronts a decline in revenue, with gaming revenue dropping approximately 9.5% in the December quarter, according to a report by Reuters. The division also encounters competition from Sony’s PlayStation and challenges from tariff-related cost pressures.