Microsoft has named Asha Sharma as the new head of its gaming division, taking over from Phil Spencer, who is retiring after a 38-year tenure at the company, the tech giant revealed on Friday.
Sharma, previously in charge of AI product development at Microsoft, now assumes the role of Executive Vice President and CEO of Microsoft Gaming. Her prior experiences include serving as Chief Operating Officer at Instacart and as a Vice President at Meta.
In an internal memo, Sharma expressed her appreciation for the work of past contributors to the gaming industry, stating, “I am entering a role shaped by generations of creative minds who have brought joy and profound personal connections to millions of players.”
Spencer, who led the division for 12 years and oversaw major acquisitions like Activision Blizzard and ZeniMax, disclosed his decision to retire last autumn. He will provide advisory support until summer for a seamless transition.
Microsoft CEO Satya Nadella commended Spencer for his exceptional leadership and collaboration, remarking, “Throughout his 38-year tenure at Microsoft, including 12 years at the helm of the Gaming division, Phil played a crucial role in reshaping our operations and approach.”
Matt Booty has been elevated to the position of Executive Vice President and Chief Content Officer, reporting to Sharma. His previous responsibilities included overseeing game content and studios. Meanwhile, Sarah Bond, President and Chief Operating Officer at Xbox, is exiting the company.
Sharma outlined three key objectives for the division: delivering outstanding games, reinforcing the focus on the Xbox console, and shaping the future of gaming. She emphasized a renewed commitment to the loyal Xbox community, highlighting their 25-year investment in the brand.
The leadership transition occurs as Microsoft Gaming confronts a decline in revenue, with gaming earnings dropping approximately 9.5% in the December quarter, according to a Reuters report. The division also faces competition from Sony’s PlayStation and cost pressures due to tariffs.
