In a significant leadership shake-up, Microsoft has announced major changes within its gaming and Xbox division.

The most notable development is the retirement of Phil Spencer, effective February 23. Spencer has long been considered the face of Xbox, playing a central role in shaping the brand’s strategy, expanding Game Pass, and overseeing key acquisitions over the past decade.

In addition, Sarah Bond will officially depart from the company. Bond had been instrumental in driving Xbox’s business strategy and strengthening its global partnerships.

To lead the next chapter, Microsoft has appointed Asha Sharma as the new head of the Xbox division. Sharma previously served as head of Microsoft’s Artificial Intelligence sector, and this will mark her first direct involvement in the gaming industry.

The decision signals a potentially transformative shift in direction for Xbox. With a background rooted in AI leadership, Sharma’s appointment may reflect Microsoft’s broader ambition to integrate advanced technologies more deeply into its gaming ecosystem.

As the transition unfolds, industry observers will closely watch how this new leadership structure shapes the future of Xbox, its first-party studios, and its long-term strategy in an increasingly competitive gaming landscape.