Effective immediately, Phil Spencer, CEO of Microsoft Gaming and the head of all things Xbox, is retiring from the company. The news comes from a report by IGN, which has also received a statement sent to Microsoft staff by Microsoft CEO Satya Nadella. “I want to thank Phil for his extraordinary leadership and partnership,” Nadella said. “Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.”
Spenccer also sent an email to Microsoft staff, stating that he was already considering stepping away from his duties at Microsoft, leading Xbox, and “starting the next chapter” of his life. Spencer adds that this transition has been in place since that time. “Xbox has always been more than a business,” he added. “It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.”
Asha Sharma, who joined Microsoft in 2024, will take over as Microsoft Gaming CEO and is already planning a vision for the future of all things Xbox. There will be plenty of concerns given Sharma’s prior role at Microsoft as the President of CoreAI. She actually addresses the current state of AI in the gaming landscape in her opening statement.
As monetization and AI evolve and influence this future, 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.
Spencer isn’t the only Xbox executive to be leaving the company. Sarah Bond, the President of Xbox, is also looking to start a new chapter. Matt Booty, the Head of Xbox Game Studios, is being promoted to Chief Content Officer.
Does Microsoft Gaming’s new CEO hint at a return of console-exclusive Xbox games?
In Sharma’s first statement as Microsoft’s gaming CEO, she pledged to bring about the return of Xbox.
We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world. We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.
That particular comment about a “renewed commitment to Xbox starting with console” stands out; under Spencer and Bond’s leadership, the Xbox brand embraced a “Play Anywhere” model where you can play Xbox games on any supported device, whether it was an Xbox console, PC, PlayStation 5, or other handheld devices.
Now, I’m not saying this confirms they’re going to focus more on delivering exclusive games, but I can’t help but think the choice of words was deliberate. She does, however, also talk about expanding across multiple platforms, and how it’s important for Xbox to feel “seamless, instant, and worthy of the communities” served on PC, mobile, and cloud.
Sharma also adds that they plan to lean into what Xbox already has: “Iconic teams, characters, and worlds that people love.” Along with this comes Sharma’s commitment to “not treat those worlds as static IP to milk and monetize. We will build a shared platform and tools that empower developers and players to create and share their own stories.”
I know for a fact that this choice of words is indeed deliberate, given Sony’s, as well as the industry at large, push for all things live-service. Like many Xbox fans, I’m nervous about what the future holds. If the company can lean into what made us fall in love with Xbox in the past, though, then I’ll be happy. Of course, one easy way to do this is to give us a new Banjo-Kazooie game. I won’t hold my breath, tough.
