Phil Spencer announced on LinkedIn that he is retiring from Microsoft after 38 years, ending a tenure that included more than a decade leading Xbox and Microsoft Gaming.
Asha Sharma has stepped into the role of CEO of Microsoft Gaming, while Xbox President Sarah Bond has also stepped down as part of the transition.
In his LinkedIn post, Spencer wrote: “It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been fortunate enough to share with so many of you.”
Spencer joined Microsoft as an intern in 1988 and went on to hold senior leadership roles including Head of Xbox and Executive Vice President of Gaming. Confirming the leadership handover, he wrote: “I’m excited for Asha Sharma as she steps into the CEO role. She’s joining an incredible group of people; teams full of talent, heart, and a deep commitment to the players they serve. Watching her lean in with curiosity and a real desire to strengthen the foundation we’ve built gives me confidence that our Xbox communities will be well supported in the years ahead.”
Reflecting on his career, Spencer added: “Thinking back to my start as an intern in 1988, I never could have imagined the path ahead. I’ve been lucky to work with so many passionate creators, partners, colleagues, and players across the industry; people who challenged me, taught me, and made this work full of joy and wonder.”
He concluded the post by writing: “Thank you to everyone who’s been part of this chapter. This community has meant more to me than I can say.
From here, I’ll keep doing what’s always mattered so much to me: cheering on the teams pushing this industry forward and playing alongside this incredible community. I’ll see you online.”
Asha Sharma outlines scale of Microsoft Gaming
Sharma also shared the leadership update on LinkedIn, writing: “Today I am honored to step into the role of CEO of Microsoft Gaming.”
She emphasized the scale of the business she now leads, stating: “Over the last 25 years, Xbox has grown to reach more than 500 million monthly active players around the world, including nearly 40 studios across Activision, Bethesda, Blizzard, King, Mojang, and Xbox Game Studios. Together, these teams care for some of the most enduring and beloved franchises in entertainment including Halo, Minecraft, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout. Our reach today spans devices, geographies, and generations.”
Sharma acknowledged Spencer’s leadership and confirmed a broader executive shift, writing: “Thanks to Phil Spencer for his leadership, and to every studio, platform, and operations team that built this foundation. I want to congratulate Matt Booty on his promotion to Chief Content Officer. Matt’s career reflects a lifelong commitment to games and to the people who make them. I am looking forward to partnering with and learning from him.”
She added that gaming remains central to Microsoft’s technology strategy, stating: “Gaming has always pushed the limits of technology. It demands the best from hardware, software, and services. It brings together art and engineering in ways few other media can.”
In a separate post, Sharma reflected on recognizing Spencer’s tenure, writing that he “led this team through big moments. Some exciting, some hard, and all important,” and that he kept the focus on “players and creators, and on building something that would last.”
Internal reaction from Xbox leadership
Haiyan Zhang, General Manager, Gaming AI at Xbox, also marked the transition in a LinkedIn post. She wrote: “Congratulations to Phil Spencer on an extraordinary 38-year career at Microsoft and over a decade leading Xbox and Microsoft Gaming. Wishing you a well-earned retirement!”
Zhang described Spencer’s leadership style during her time at Xbox, stating that he “brought with him a passion for players, games, developers, and deep respect of the craft of game making.” She added that when she shared ideas from Microsoft Research, “Phil met them with curiosity and encouragement. He made space for bold thinking and brought those conversations to his leadership team.”
The leadership changes come as Microsoft Gaming operates across console hardware, subscription services, cloud infrastructure, AI-driven development tools, and major studio acquisitions including Activision Blizzard. With Spencer and Bond stepping away from their roles, Microsoft enters a new phase of executive oversight at one of its most strategically significant consumer businesses.
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