Microsoft gaming chief Phil Spencer steps down after 38 years with company

Ars Technica

by Kyle Orland

February 20, 2026

AI-Generated Deep Dive Summary

Microsoft's Executive Vice President of Gaming, Phil Spencer, has announced his retirement after 38 years with the company, including 12 years at the helm of its gaming division. This marks a significant shift in leadership, as Asha Sharma, currently heading Microsoft’s CoreAI division, will take over Spencer’s role. Notably, Sarah Bond, who was widely seen as Spencer’s successor and served as Xbox President, has also resigned from her position. Meanwhile, Matt Booty, head of Xbox Studios, has been promoted to Executive Vice President and Chief Content Officer, signaling a new era for Microsoft’s gaming efforts. Spencer’s departure is not entirely unexpected; he had informed CEO Satya Nadella last fall about his plans to step down and focus on the next chapter of his life. He will remain in an advisory role through the summer to ensure a smooth transition for Sharma, who now faces the challenge of leading Microsoft’s gaming division from her technical background in AI. This move reflects Microsoft’s strategic pivot toward integrating its gaming and AI efforts, aligning with broader industry trends. Spencer’s tenure at Microsoft has been pivotal, particularly his leadership in revitalizing Xbox and driving the success of Xbox Game Pass, a subscription service that revolutionized gaming accessibility. His departure leaves a significant void, but Sharma brings her own strengths in AI innovation to the table. The transition underscores Microsoft’s commitment to evolving its gaming strategy while maintaining its competitive edge in the industry. This shake-up matters because it signals a broader shift in how tech giants are aligning their leadership with emerging trends like artificial intelligence and cloud-based gaming services. For readers interested in tech, this highlights the dynamic nature of corporate leadership and the importance of adapting to new technological landscapes. The changes at Microsoft’s gaming division will likely influence the direction of one of the industry’s most influential players, shaping the

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Originally published on Ars Technica on 2/20/2026