'Father of the Xbox' predicts the end following Phil Spencer's exit: The new CEO will be 'a palliative care doctor who slides Xbox gently into the night'
PC Gamer
by Andy Chalk February 23, 2026
AI-Generated Deep Dive Summary
Seamus Blackley, a key figure in the creation of the original Xbox, has made waves by predicting that Microsoft’s new CEO, Asha Sharma, will oversee the gradual decline and eventual end of Xbox as the company doubles down on its focus on AI. Blackley, who left Microsoft in 2002, suggested that Xbox and other non-AI-focused businesses are being phased out, with executives like Sharma acting as “palliative care doctors” guiding these units into obscurity. This shift aligns with CEO Satya Nadella’s emphasis on AI as the future of Microsoft, a strategy reflected in the recent leadership changes within gaming.
Phil Spencer’s surprise retirement and Sarah Bond’s resignation as Xbox president have left many questions unanswered. Bond, who was seen as Spencer’s potential successor, was notably absent from public statements acknowledging Sharma or others. This silence has fueled speculation about whether her lack of recognition reflects internal conflicts or a deliberate strategy to move past traditional gaming divisions. Meanwhile, Sharma, who joined Microsoft in 2024 and previously focused on AI at Instacart and Meta, brings a background in scaling platforms rather than gaming expertise.
Blackley’s comments highlight a broader trend within Microsoft: the prioritization of AI over traditional entertainment sectors like gaming. He argued that AI is abstracting decision-making for executives, leading to a focus on scaling services and aligning business models with long-term value—priorities that often clash with the creative, creator-driven nature of gaming. While this strategy may make sense financially, it raises concerns among gaming enthusiasts about the future of Xbox and its role in shaping interactive entertainment.
For readers interested in gaming, Blackley’s insights reveal a potential shift in Microsoft’s direction—one that could redefine how games are developed, marketed, and consumed. Whether this transition will ultimately benefit or harm the gaming industry remains to be seen, but it underscores the growing influence of AI across all sectors, including entertainment. As Xbox’s fate hangs in the balance, Blackley’s bold prediction serves as a reminder of the challenges—and opportunities—lying ahead for both Microsoft and its gaming division.
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Originally published on PC Gamer on 2/23/2026