Read Xbox chief Phil Spencer’s memo about leaving Microsoft
The Verge
February 20, 2026
AI-Generated Deep Dive Summary
Xbox chief Phil Spencer has announced his retirement from Microsoft after nearly four decades with the company. In a memo titled "A New Chapter for Microsoft Gaming," Spencer revealed that he decided to step down last fall. His departure comes alongside the exit of Xbox president Sarah Bond, signaling significant changes in leadership at Xbox. Asha Sharma, currently leading CoreAI products at Microsoft, will take on the role of CEO for Microsoft Gaming, reporting directly to Satya Nadella.
Spencer’s career at Microsoft spanned 38 years, during which he played a pivotal role in shaping Xbox into a major player in the gaming industry. His tenure saw the introduction of groundbreaking consoles like the Xbox Series X/S and the expansion of Xbox Game Pass, solidifying Microsoft's position in the gaming market. Spencer expressed gratitude for his time at Microsoft and emphasized the importance of collaboration and innovation during his farewell message.
Sarah Bond’s departure further underscores the scale of leadership changes at Xbox. Bond, a key figure in driving Xbox’s growth over the past decade, had been instrumental in areas such as content acquisition and partnerships. Her exit leaves a significant void, which Asha Sharma will now aim to fill. Sharma’s transition from AI to gaming leadership highlights Microsoft’s strategic focus on integrating advanced technologies like artificial intelligence into its gaming division.
This reshuffling of top executives marks a new era for Microsoft Gaming. With Spencer and Bond leaving, the company is signaling a shift in priorities under Sharma’s leadership. As someone deeply involved in AI, Sharma brings a fresh perspective that aligns with Microsoft’s broader focus on innovation and cloud-based entertainment solutions. This transition not only reflects the evolving nature of the gaming industry but also underscores the growing importance of technology integration in modern gaming experiences.
For tech enthusiasts and industry watchers, these changes highlight the dynamic nature of leadership roles within major tech companies. The departure of seasoned executives like Spencer and Bond and the rise of new leaders like Sharma offer insights into how Microsoft is adapting
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Originally published on The Verge on 2/20/2026