Xbox boss Phil Spencer is retiring, and his replacement is an AI executive who joined Microsoft in 2024
PC Gamer
by Andy Chalk February 20, 2026
AI-Generated Deep Dive Summary
After nearly 40 years at Microsoft, Phil Spencer, the iconic CEO of Microsoft Gaming, is retiring. His departure marks the end of an era for Xbox, a platform he helped grow into a global gaming giant. In his farewell memo, Spencer reflected on his journey, emphasizing that Xbox has always been more than a business—it’s a vibrant community of players and creators. However, the succession plan is unexpected: Sarah Bond, widely seen as Spencer’s successor, has resigned from Microsoft. Instead, Asha Sharma, who joined Microsoft in 2024 as president of CoreAI, will take over as Microsoft Gaming CEO. Known for her AI expertise, Sharma has assured fans that Xbox will not prioritize short-term efficiency or flood the ecosystem with “soulless AI slop.” She aims to maintain Xbox’s renegade spirit and push innovation while preserving its core values.
Spencer expressed confidence in Sharma during their several months of collaboration and plans to remain in an advisory role through the summer to ensure a smooth transition. While his exact post-retirement plans are unclear, Spencer hinted at continuing to support the gaming industry and engage with the community he helped build. His departure leaves a leadership vacuum that Sharma will fill, bringing her AI background to Xbox while pledging to uphold its creative and community-driven ethos.
This shift in leadership is significant for gaming enthusiasts. It signals Microsoft’s strategic focus on integrating AI into gaming while maintaining the authenticity that has long defined Xbox. Bond’s unexpected resignation adds intrigue to the situation, as she was seen as a natural successor but chose to leave the company entirely. Meanwhile, Matt Booty’s promotion to Chief Content Officer suggests a redefined role for creative leadership under Sharma.
For readers interested in gaming, this transition highlights the evolving landscape of game development and AI integration. It also underscores the importance of preserving creativity and authenticity in an industry increasingly shaped by technology.
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Originally published on PC Gamer on 2/20/2026