Microsoft has officially appointed Asha Sharma as the new Executive Vice President and CEO of Microsoft Gaming, marking the end of Phil Spencer‘s 12-year run leading the division.
The announcement was made on February 20, 2026, through internal communications shared by Satya Nadella, Microsoft’s Chairman and CEO. Sharma will report directly to Nadella in her new role.
Who Is Asha Sharma?
Asha Sharma has been with Microsoft for the past two years. Before joining the company, she served as Chief Operating Officer at Instacart and held a Vice President position at Meta. Her background includes building and scaling consumer platforms and developer ecosystems at a global level.
In his message to employees, Nadella highlighted Sharma’s experience in aligning business models to long-term value and operating at global scale as key reasons behind the appointment.
Phil Spencer Steps Down After 38 Years at Microsoft
Phil Spencer first joined Microsoft as an intern in June 1988. He went on to lead Microsoft Gaming for 12 years, during which the division grew significantly. Under his leadership, the gaming business nearly tripled in size. He also played a central role in shaping Microsoft’s strategy through the acquisitions of Activision Blizzard, ZeniMax, and Minecraft.
Spencer shared that he informed Nadella last fall about his plans to step back. He will remain in an advisory role through the summer of 2026 to support a smooth transition.
Spencer expressed confidence in Sharma’s leadership, noting that he had worked closely with her over the past several months during the transition planning process.
Matt Booty Promoted to EVP and Chief Content Officer
Alongside Sharma’s appointment, Matt Booty has been promoted to Executive Vice President and Chief Content Officer at Microsoft Gaming. He will report directly to Asha Sharma.
Booty currently oversees nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King. These studios are home to major franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
Booty confirmed in his message that no organizational changes are underway for the studios at this time.
Sarah Bond Departs Microsoft
As part of the leadership transition, Sarah Bond has decided to leave Microsoft. Spencer acknowledged Bond’s contributions to Xbox’s platform strategy, Game Pass expansion, cloud gaming growth, and hardware launches during her tenure.
No details were shared about Bond’s next move.
Asha Sharma’s Three Priorities for Microsoft Gaming
In her message to the team, Sharma outlined three key commitments for her leadership:
Great Games: Sharma emphasized that everything starts with making great games. She committed to empowering studios, investing in iconic franchises, and supporting bold new ideas. She also signaled interest in entering new categories and markets where Microsoft can deliver value to players.
The Return of Xbox: Sharma pledged a renewed focus on core Xbox fans and the console experience. At the same time, she acknowledged that gaming now spans multiple devices and promised a seamless experience across PC, mobile, and cloud platforms.
Future of Play: Sharma spoke about building new business models and new ways to play. She stated that Microsoft will create shared platforms and tools that let developers and players build their own stories. She was direct about AI, saying Microsoft will not chase short-term efficiency or flood the ecosystem with low-quality AI content. In her words, games will always be art crafted by humans.
The announcement comes as Xbox celebrates its 25th anniversary. According to Nadella, Microsoft Gaming now reaches over 500 million monthly active users and is a top publisher across all platforms. The division spans nearly 40 studios worldwide.
Nadella also drew a historical line from Microsoft’s early gaming roots, noting that Flight Simulator shipped before Windows and that the journey from DirectX in the 1990s connects to the accelerated compute era of today.
The leadership change represents a significant shift for Microsoft Gaming. Sharma brings a consumer tech and platform-scaling background rather than a traditional gaming industry pedigree. Combined with Matt Booty’s deep content expertise, the new leadership structure separates business and platform strategy from creative and content oversight.
With Spencer transitioning out and Bond departing, the Xbox division enters a new chapter under entirely fresh leadership at the top.
