Quick Brief
- Asha Sharma named EVP and CEO of Microsoft Gaming on February 20, 2026, reporting directly to Satya Nadella
- Phil Spencer retires after 38 years at Microsoft, including 12 years leading the gaming division
- Matt Booty promoted to EVP and Chief Content Officer, overseeing nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King
- Sarah Bond, Xbox President, departs Microsoft as part of the leadership transition
Microsoft Gaming just executed its most consequential leadership change in a decade, and the choice of successor signals a deliberate pivot toward AI-driven platform growth. Asha Sharma, who most recently served as President of Core AI Product at Microsoft, steps in as Executive Vice President and CEO of Microsoft Gaming, effective February 20, 2026. This is not a routine promotion; it is a strategic reset for a division at an inflection point.
Who Is Asha Sharma and Why Did Microsoft Pick Her
Sharma brings a background that looks nothing like her predecessor’s. She began her career at Microsoft in 2011 in the marketing department, then moved to Porch Group as Chief Operating Officer, where she was part of the company’s $1 billion public debut. She joined Meta in 2017 as Vice President of Product and Engineering, serving as Head of Product across Messenger and Instagram Direct and as General Manager of calling, video, and kids experiences.
She later served three years as Chief Operating Officer at Instacart, helping lead the company to its IPO and profitability while overseeing a $30 billion-plus GMV profit and loss portfolio covering product, design, data science, marketing, operations, and new businesses. She rejoined Microsoft in 2024, first as Corporate Vice President and Head of Product for Microsoft’s AI Platform, and then as President of Core AI Product, leading the portfolio for AI models, applications, agents, responsible AI, and developer tools for customers worldwide.
Satya Nadella’s memo to employees makes the rationale explicit: Sharma’s experience “building and scaling services that reach billions of people and supporting thriving consumer and developer ecosystems” is precisely what Microsoft Gaming needs heading into its next growth cycle. She also serves on the boards of Coupang and The Home Depot.
Her Indian-origin background has drawn significant attention across India and the global South Asian tech community, with coverage from NDTV, Times of India, and Moneycontrol highlighting the appointment.
Phil Spencer’s Exit: 38 Years and a Transformed Division
Spencer spent 38 years at Microsoft, 12 of them leading Gaming. He walked through Microsoft’s doors as an intern in June 1988 and built Xbox into a platform reaching over 500 million monthly active users. His tenure included three transformative acquisitions: Activision Blizzard, ZeniMax, and Minecraft.
Spencer also nearly tripled the size of the gaming business and expanded its reach across PC, mobile, and cloud during his leadership. He disclosed in his farewell memo that he told Nadella last fall he was thinking about stepping back and starting the next chapter of his life, and that from that moment both agreed on approaching the transition with intention and ensuring stability. He will remain in an advisory capacity through summer 2026 to support a smooth handoff.
The New Leadership Structure at Microsoft Gaming
The restructuring creates a two-leader model at the top. Sharma holds overall strategic and business authority as CEO, while Matt Booty takes the newly created EVP and Chief Content Officer role, reporting directly to Sharma.
Booty’s studio portfolio is formidable. Under his oversight sit nearly 40 studios across Xbox Game Studios, Bethesda, Activision Blizzard, and King, home to franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout. Booty confirmed in his message to employees that no organizational changes are underway for studios.
Sarah Bond, who served as Xbox President and shaped platform strategy, expanded Game Pass and cloud gaming, and supported new hardware launches, has decided to leave Microsoft to begin a new chapter.
Sharma’s Three Strategic Commitments for Xbox
In her first message to the Microsoft Gaming team, Sharma laid out three explicit priorities:
- Great games first: Empower studios, invest in iconic franchises, back bold new ideas, take risks, and enter new categories grounded in what players care about most
- Return of Xbox: Recommit to core Xbox fans and developers with a renewed focus on console, while expanding seamlessly across PC, mobile, and cloud so developers can build once and reach players everywhere
- Future of play: Invent new business models and build shared platform tools that empower developers and players to create and share their own stories
That third commitment carries a notable warning. Sharma stated directly: “We will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.” This positions Microsoft Gaming firmly against using generative AI as a replacement for human creative labor.
What This Means for Xbox and Game Pass
Microsoft Gaming now reaches over 500 million monthly active users and is a top publisher across all platforms. The division operates nearly 40 studios and manages some of the most recognised franchises in entertainment, from Halo and Call of Duty to Minecraft and Candy Crush.
Sharma steps into the role with strong AI platform and consumer product credentials, but gaming industry operations present a distinct set of challenges: console hardware cycles, multi-year game development timelines, and deeply invested player communities that respond sharply to strategic missteps. Her success will depend significantly on how effectively she and Booty divide strategic and creative responsibilities while the business pursues its next growth phase.
Matt Booty’s elevation to Chief Content Officer is a stabilising signal for studios. It keeps a games-first leader in direct control of the creative pipeline while Sharma focuses on platform strategy, business models, and global growth.
Considerations
Sharma’s background spans marketing, product, operations, and AI platform leadership, but she has no direct prior experience in game development or console hardware businesses. Consumer product platforms and gaming ecosystems share structural similarities, but gaming carries specific creative and community dynamics that differ from e-commerce or AI tooling. How quickly she builds domain fluency in gaming will shape the pace and direction of Microsoft Gaming’s next chapter.
Frequently Asked Questions (FAQs)
Who is the new CEO of Microsoft Gaming?
Asha Sharma was named Executive Vice President and CEO of Microsoft Gaming on February 20, 2026. She reports directly to Satya Nadella. Before this role she served as President of Core AI Product at Microsoft, overseeing AI models, applications, agents, and developer tools globally.
Why did Phil Spencer retire from Microsoft?
Spencer shared in his farewell memo that last fall he told Satya Nadella he was thinking about stepping back and starting the next chapter of his life. He spent 38 years at Microsoft, including 12 years leading the gaming division. He will remain in an advisory capacity through summer 2026.
What is Asha Sharma’s professional background?
Sharma started her career at Microsoft in marketing in 2011, then held COO roles at Porch Group and Instacart, where she helped lead the company to IPO and profitability on a $30 billion-plus GMV portfolio. She also served as Vice President of Product and Engineering at Meta from 2017.
What happens to Xbox studios under the new structure?
Matt Booty has been promoted to EVP and Chief Content Officer, maintaining direct oversight of nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King. Booty confirmed explicitly that no organisational changes are underway for studios.
Is Sarah Bond leaving Microsoft?
Yes. Sarah Bond, who served as Xbox President, has decided to leave Microsoft to begin a new chapter. She shaped Xbox’s platform strategy, expanded Game Pass and cloud gaming, and guided major hardware launches during her tenure.
How large is Microsoft Gaming under Sharma’s leadership?
Microsoft Gaming reaches over 500 million monthly active users and is a top publisher across all platforms. It operates nearly 40 studios and manages franchises including Halo, Call of Duty, The Elder Scrolls, World of Warcraft, Diablo, Candy Crush, and Fallout.
What does Sharma mean by “future of play”?
Sharma’s future of play commitment focuses on inventing new business models and building shared platform tools for developers and players. She explicitly rejected flooding the ecosystem with AI-generated content, calling games “art, crafted by humans.” She wants to revive the original renegade spirit that built Xbox.
What did Satya Nadella say about Phil Spencer’s legacy?
Nadella credited Spencer with expanding Xbox’s reach across PC, mobile, and cloud; nearly tripling the size of the business; and shaping Microsoft’s gaming strategy through the acquisitions of Activision Blizzard, ZeniMax, and Minecraft over his 38-year Microsoft career.
Who is the new CEO of Microsoft Gaming?
Asha Sharma was named Executive Vice President and CEO of Microsoft Gaming on February 20, 2026. She reports directly to Satya Nadella. Before this role she served as President of Core AI Product at Microsoft, overseeing AI models, applications, agents, and developer tools globally.
Why did Phil Spencer retire from Microsoft?
Spencer shared in his farewell memo that last fall he told Satya Nadella he was thinking about stepping back and starting the next chapter of his life. He spent 38 years at Microsoft, including 12 years leading the gaming division. He will remain in an advisory capacity through summer 2026.
What is Asha Sharma’s professional background?
Sharma started her career at Microsoft in marketing in 2011, then held COO roles at Porch Group and Instacart, where she helped lead the company to IPO and profitability on a $30 billion-plus GMV portfolio. She also served as Vice President of Product and Engineering at Meta from 2017.
What happens to Xbox studios under the new structure?
Matt Booty has been promoted to EVP and Chief Content Officer, maintaining direct oversight of nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King. Booty confirmed explicitly that no organisational changes are underway for studios.
Is Sarah Bond leaving Microsoft?
Yes. Sarah Bond, who served as Xbox President, has decided to leave Microsoft to begin a new chapter. She shaped Xbox’s platform strategy, expanded Game Pass and cloud gaming, and guided major hardware launches during her tenure.
How large is Microsoft Gaming under Sharma’s leadership?
Microsoft Gaming reaches over 500 million monthly active users and is a top publisher across all platforms. It operates nearly 40 studios and manages franchises including Halo, Call of Duty, The Elder Scrolls, World of Warcraft, Diablo, Candy Crush, and Fallout.
What does Sharma mean by “future of play”?
Sharma’s future of play commitment focuses on inventing new business models and building shared platform tools for developers and players. She explicitly rejected flooding the ecosystem with AI-generated content, calling games “art, crafted by humans.” She wants to revive the original renegade spirit that built Xbox.
What did Satya Nadella say about Phil Spencer’s legacy?
Nadella credited Spencer with expanding Xbox’s reach across PC, mobile, and cloud; nearly tripling the size of the business; and shaping Microsoft’s gaming strategy through the acquisitions of Activision Blizzard, ZeniMax, and Minecraft over his 38-year Microsoft career.
