Microsoft is preparing to make fundamental changes within its gaming sector, as Phil Spencer will leave his position as CEO of Microsoft Gaming on February 23, 2026, while Sarah Bond will also leave as head of Xbox. In return, Asha Sharma will assume overall leadership of the division, while a successor to the position of Xbox President has not yet been announced.
The announcement sparked widespread discussion within the gaming community, especially since Sharma previously led the company’s CoreAI division. Since 2014, Spencer has been the face of the Xbox brand, leading it through a phase of strategic restructuring that followed the faltering launch of the Xbox One.
During his leadership, landmark services such as Xbox Game Pass were launched, which expanded significantly and became a key pillar of the company’s strategy.
With Sharma at the helm, the gaming sector is expected to enter a new phase. Given its background in the field of artificial intelligence, a number of users expressed concerns about the growing role of generative AI in the company’s future directions.
However, in her first interview with IGN, Sharma sought to allay these fears, as she stressed that she does not tolerate “bad artificial intelligence,” stressing that the goal of technology should be to support innovation, not to produce soulless content.
She also explained that game quality and a clear creative vision must remain at the core of the development process, noting that a great game is measured by its emotional impact and clarity of perspective, citing Firewatch as an example of this.
At the same time, Sharma intends to reposition Xbox as a brand focused on home gaming consoles, while maintaining a strategy of multi-platform presence across PC, mobile and cloud computing.
However, it will still have to convince society that these promises will turn into concrete practical steps. Phil Spencer will remain in an advisory role until the summer of 2026 to ensure a smooth leadership transition.
