Phil Spencer retires as Microsoft Gaming CEO as Sarah Bond exits in major Xbox shake-up

Phil Spencer is retiring from his role as CEO of Microsoft Gaming, bringing an end to a transformative era for Xbox. In a parallel move, Sarah Bond is also leaving the company, despite long being viewed as a potential successor to Spencer.

Microsoft confirmed that Asha Sharma, formerly head of the company’s CoreAI product division, will take over as Executive Vice President and CEO of Microsoft Gaming. Meanwhile, Matt Booty has been promoted to Executive Vice President and Chief Content Officer, overseeing the company’s expansive portfolio of studios and franchises.

Bond, who joined Xbox in 2017 and rose through the ranks to become President of Xbox in 2022, played a key role in shaping the platform’s strategy, including Game Pass expansion, cloud gaming initiatives, and hardware launches. Her departure marks another significant shift in leadership during a milestone year for the brand.

Spencer, who began his Microsoft career as an intern in 1988 and became Head of Xbox in 2014, helped steer the company through the rocky Xbox One era and into a period defined by Game Pass growth, cross-platform releases, and major acquisitions such as Activision Blizzard and Bethesda.

In a message to staff, Spencer called his career at Microsoft “the privilege of a lifetime” and said he would remain in an advisory role through the summer to ensure a smooth transition.

Sharma said she feels both “humility and urgency” stepping into the position, outlining priorities that include delivering great games, recommitting to Xbox’s core console audience, and shaping the future of play while maintaining that games remain human-crafted experiences.

Microsoft CEO Satya Nadella praised Spencer’s decades of leadership and expressed confidence in the new executive team as Xbox enters its next chapter.