Xbox shakeup: Phil Spencer and Sarah Bond are leaving Microsoft
The Verge
February 20, 2026
AI-Generated Deep Dive Summary
Xbox chief Phil Spencer and Xbox president Sarah Bond are leaving Microsoft after nearly 40 years combined with the company. Their departures mark a significant leadership shakeup in Microsoft’s gaming division, with Spencer retiring and Bond departing as part of the transition. In a memo from Microsoft CEO Satya Nadella, it was revealed that Spencer had announced his retirement last year, prompting discussions about succession planning. This move follows rumors of Spencer’s potential departure, which Microsoft previously downplayed.
To fill Spencer’s role, Microsoft has appointed Asha Sharma, president of CoreAI, as the new Microsoft Gaming CEO. Additionally, Matt Booty, a longtime Xbox executive, has been promoted to EVP and chief content officer. These changes suggest a strategic reorganization aimed at strengthening Xbox’s position in the gaming industry. Microsoft has emphasized that these leadership shifts do not signal layoffs for game studios, reassuring employees and fans about the future of Xbox.
The departures of Spencer and Bond are significant for the gaming world, as both have played pivotal roles in shaping Xbox’s success over the years. Spencer, known for his leadership during Xbox’s rise, helped establish the company as a major player in gaming. Bond, who joined Xbox in 2013, was instrumental in expanding its content and partnerships.
This shakeup raises questions about how Microsoft will navigate its gaming strategy under new leadership. With Sharma bringing expertise from AI and cloud computing to gaming, and Booty focusing on content development, the future of Xbox could see a renewed emphasis on innovation and creative storytelling. These changes highlight Microsoft’s commitment to evolving its gaming division while maintaining stability for its game studios.
For tech enthusiasts, this news underscores the dynamic nature of leadership transitions in major companies. It also signals Microsoft’s intention to adapt and innovate in response to shifting industry trends. As Xbox moves forward under new leadership, fans and industry-watchers will be closely monitoring how these changes impact the company’s direction and its ability to compete in the global gaming market.
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Originally published on The Verge on 2/20/2026