A major shake-up at Microsoft Gaming: according to sources close to the matter, Phil Spencer, a longtime figurehead of the brand since the era of the first Xbox, will retire on Monday, February 23, 2026. In the same move, Sarah Bond, Xbox president and often seen as Spencer’s natural successor, has submitted her resignation. To oversee the entire operation, Microsoft is handing the reins to Asha Sharma, currently head of CoreAI products. Finally, Matt Booty, formerly head of Xbox Game Studios, has been promoted to Chief Content Officer, tasked with securing the creative pipeline alongside Sharma.

In an internal message, Satya Nadella praised the impact of a leader who spent 38 years at Microsoft, including 12 at the helm of its gaming division, and highlighted a career defined by major strategic choices: backward compatibility, the growth of Game Pass, accessibility, and an expansion strategy across all platforms. Spencer’s tenure will also be associated with major acquisitions, notably Activision Blizzard King ($69 billion) and ZeniMax/Bethesda, while navigating a Series X|S generation slowed by slower adoption, followed by a difficult 2025 (higher hardware and Ultimate subscription prices).

Asha Sharma has already laid out a three-pronged roadmap: prioritizing “great games”, reclaiming an Xbox identity centered on the console but designed to work “seamlessly” across PC, mobile and the cloud, and envisioning a future of gaming in which AI supports creativity without “flooding the ecosystem” with soulless content. In terms of releases, Xbox is aiming for a more regular cadence, with its 2026 lineup notably including Forza Horizon 6, Fable, Gears of War: E-Day and the remake of Halo: Campaign Evolved.