Xbox head Phil Spencer is leaving Microsoft

Engadget

by Ian Carlos Campbell

February 20, 2026

AI-Generated Deep Dive Summary

Phil Spencer, the CEO of Microsoft Gaming, has announced his retirement, marking a significant shift in leadership at one of the tech industry’s most prominent gaming divisions. Satya Nadella, Microsoft’s CEO, revealed that Asha Sharma, currently the president of Microsoft's CoreAI division, will take over as the new CEO of Microsoft Gaming. This move comes alongside other key changes, including Sarah Bond’s resignation from her role as President of Xbox and Matt Booty’s promotion to Chief Content Officer, reporting directly to Sharma. Spencer, who joined Microsoft in 1988 and has been a pivotal figure in shaping Xbox since at least 2001, is best known for his roles in creating Xbox Game Pass, often referred to as the "Netflix of Games," and spearheading Microsoft’s aggressive acquisition strategy from 2018 to 2022. This period saw major deals, including the $68.7 billion purchase of Activision Blizzard King. However, despite these efforts, Microsoft Gaming has faced challenges in competing with Sony and Nintendo during the current console generation. The division has grappled with widespread layoffs, declining revenue, and recent price increases for consoles and Game Pass Ultimate, which may further strain its position in the market. Sharma’s appointment is a strategic pivot for Microsoft Gaming, as she brings extensive experience

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Originally published on Engadget on 2/20/2026