Microsoft names AI executive Asha Sharma to lead Xbox and gaming. She replaces Phil Spencer. The company recommit to console fans after years focused on PC and mobile.
Phil Spencer ran Xbox since 2014. Microsoft named him gaming CEO in 2022. Now he retires after 38 years at the company.
Xbox President Sarah Bond also leaves. Matt Booty steps up as chief content officer. He reports directly to Sharma.
Sharma brings strong consumer expertise. She served as COO at Instacart. Earlier roles came at Meta Platforms. She rejoined Microsoft two years ago to head Core AI products.
CEO Satya Nadella praised her in a blog post. Sharma oversees AI models, agents, and tools. Last year, she led a rapid response to China’s DeepSeek model. Her team tested it quickly for Azure customers.
Recently, Microsoft shifted strategy. It bought Activision Blizzard for $69 billion. The firm targeted PC and mobile gamers. Console fans felt alienated as games went to Sony and Nintendo devices.
Layoffs hit over 2,500 gaming staff since 2024. Studios like Arkane Austin closed. Games got canceled after years in development.
Sharma vows change. She emailed staff about recommitting to core Xbox players. Those fans invested for 25 years. Developers build beloved worlds too. Console roots get renewed focus first.
Xbox faced tough times. Sales stalled after Xbox One lost to rivals. Spencer admitted the 2013 console struggled badly. Game Pass grew subscribers but slowed later. Prices rose 50% as a result.
Acquisitions added Mojang, Bethesda, and Call of Duty. They aimed to boost subscriptions. Yet premium sales dropped. CFO Amy Hood pushed for higher profits.
Shares ended flat at $397.23 Friday. Leadership shakeup signals fresh direction. Microsoft eyes growth through AI and loyal fans. Xbox enters a new chapter now.