Huge shakeup at Xbox as CEO and president both leave
Mashable
February 20, 2026
AI-Generated Deep Dive Summary
Xbox has experienced a significant leadership overhaul with CEO Phil Spencer announcing his retirement and President Sarah Bond resigning from the company. Both leaders, who have played pivotal roles in shaping Xbox's direction over the past decade, are leaving at a critical juncture for the gaming division. IGN reported that Spencer’s departure was planned since last fall, with Microsoft AI executive Asha Sharma stepping into the role to replace him. This shift comes as Xbox faces challenges, including declining console sales and reputational issues tied to its partnership with the Israeli military.
Phil Spencer's tenure at Xbox saw a major pivot toward subscription-based gaming with the introduction of Xbox Game Pass, which has become a cornerstone of Microsoft’s gaming strategy. He also oversaw high-profile acquisitions like Bethesda and Activision, significantly expanding Xbox’s portfolio of franchises. However, recent years have been challenging for the brand, with console sales faltering and first-party titles underperforming in the market.
Spencer’s departure and Bond’s resignation raise questions about how these changes will impact Xbox moving forward. In an email to staff, Spencer emphasized that this transition was intentional and aimed at ensuring stability for the company. He acknowledged the importance of Xbox as more than a business but as a community of players and creators. His successor, Asha Sharma, brings expertise in AI rather than gaming, which could signal a new direction for the division.
Sharma’s appointment is notable given her background in AI and consumer products at companies like Meta and Instacart. She will collaborate with Matt Booty, who has been promoted to Chief Content Officer of Xbox Game Studios. While this leadership change could bring fresh perspectives to Xbox, it also leaves uncertainty about how the brand will address its current challenges, including financial underperformance and reputation issues tied to the BDS boycott.
The departure of Spencer and Bond marks a turning point for Xbox, as the company seeks to rebound from recent setbacks. The success of Game Pass and the expansion of its game portfolio have laid a strong foundation, but the next chapter under Sharma and Booty will determine whether Xbox can regain momentum in the highly competitive gaming industry.
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Originally published on Mashable on 2/20/2026