Phil Spencer and Sarah Bond Are Retiring From Xbox, Replaced by Head of CoreAI as CEO.

Phil Spencer is a recognizable name to anyone in the gaming sphere. After joining the Xbox team in 2001, Spencer is officially stepping down from the company after 25 years, as shared in a post on his LinkedIn page.

Quote From Phil Spencer

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.

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. 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.

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.

Sarah Bond similarly shared that she was also leaving the company after having acted as its president for 3 years.

Quote From Sarah Bond

Sharing with gratitude the note I sent to my team today. Grateful to our players, developers, partners, and team. Forever a fan of Xbox. 💚

—–

Hi team,   I know there’s a lot of news to take in today.   I’m incredibly proud of what we’ve built together over the past eight-plus years. PC and cloud gaming are growing faster than ever, our next console is well underway, and together we’ve helped lay the foundation for a more open gaming platform that spans devices and reaches players around the world.

When we announced our intention to acquire Activision Blizzard in 2022, I committed to helping lead Xbox through what would be a critical period of change. Over the past four years, we’ve navigated that moment together and positioned the business for what comes next. We took on some of the biggest challenges this organization has ever faced and did it as one team.

With that, I’ve decided this is the right time for me to take my next step, both personally and professionally. We’re living through a transformative technological era that will shape the next generation of our industry, and I’m energized by what’s ahead. This moment also presents a unique opportunity for fresh eyes and new leadership to guide the team into its next chapter. I’ve had the privilege of spending time with Asha over the last few weeks as we’ve planned for this transition, and I’ve seen firsthand her deep commitment to our players, developers, and brand. She brings deep technology and commerce experience, along with a strong track record of building and scaling platforms that the world uses. Xbox deserves this. I’m excited to see her lead this next chapter for our team. I’ll remain on as a Special Advisor to Asha to help ensure a smooth transition and set the organization up for continued success.

I want to thank Phil for his mentorship and friendship over the years. He’s been a consistent champion of this business and the people who make it what it is, and I’ve learned a great deal from the way he leads through both opportunity and challenge. I’m grateful for his trust and support throughout my time on the team. I also want to thank Satya for his sponsorship and support throughout my time at Microsoft.

As I prepare to sign off, I’ve been reflecting on three simple questions I’ve tried to use to guide my days:

Did I bring my best?

Did I help someone else succeed?

Did I do my best work?

I hope the answer has been yes for many of you. It’s been a privilege to work alongside this team.   Always, Sarah

Phil announced in his own post he Asha Sharma would be succeeding him in his role. We're not entirely sure what extent she previously had with the business, but she worked at Microsoft as head of CoreAI, which was launched in January 2025. We're unsure if she's leaving that position for this one, or if she's taking both positions concurrently. However, there has been quite a bit of concern on the internet about how much this will affect the prevalence of AI in Xbox products. In a post on the official Microsoft blog page, she mentions "we will not chase short-term efficiency or flood our ecosystem with soulless AI slop.", ironically working as head of an AI division. We won't know the effect of this until it actually happens, but the concern that AI will gradually work its way into Xbox more and more has been ingrained by reading her past work.

Quote From Asha Sharma

Dear team,

Today I begin my role as CEO of Microsoft Gaming.

I feel two things at once: humility and urgency.

Humility because this team has built something extraordinary over decades. Urgency because gaming is in a period of rapid change, and we need to move with clarity and conviction.

I am stepping into work shaped by generations of artists, engineers, designers, writers, musicians, operators and more who create worlds that have brought joy and deep personal meaning to hundreds of millions of players. The level of craft here is exceptional, and it is amplified by Xbox, which was founded in the belief that the power of games connects people and pushes the industry forward.

Thank you to Phil for his leadership, and to every studio, platform, and operations team that built this foundation. We are stewards of some of the most loved stories and characters in entertainment and bring players and creators together around the fun and community of gaming in entirely new ways.

My first job is simple: understand what makes this work and protect it.

That starts with three commitments.

First, great games.

Everything begins here. We must have great games beloved by players before we do anything.  Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most.

I promoted Matt Booty in honor of this commitment. He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry.

Second, the return of Xbox.

We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world.

We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.

Gaming now lives across devices, not within the limits of any single piece of hardware. As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve. We will break down barriers so developers can build once and reach players everywhere without compromise.

Third, future of play.

We are witnessing the reinvention of play.

To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love. But we will not treat those worlds as static IP to milk and monetize. We will build a shared platform and tools that empower developers and players to create and share their own stories.

As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.

The next 25 years belong to the teams who dare to build something surprising, something no one else is willing to try, and have the patience to see it through. We have done this before, and I am here to help us do it again. I want to return to the renegade spirit that built Xbox in the first place. It will require us to relentlessly question everything, revisit processes, protect what works, and be brave enough to change what does not.

Thank you for welcoming me into this journey.

Asha

Though we can't know for certain until it actually happens, what do you think will come of Xbox as a result of the CEO shift? Let us know in the comments below.