Microsoft announced on Friday that Xbox management has been shaken. Phil Spencer, the head of Xbox, is retiring. He will step down as Microsoft Gaming CEO on February 23. Spencer's successor is Asha Sharma. She will join Microsoft in 2024 as president of CoreAI products, and her responsibilities are "responsible for the global product portfolio of AI models, applications, agents, responsible AI, and developer tools."
Asha Sharma
Sarah Bond (Xbox president) was previously considered to be a possible successor to Microsoft's gaming CEO, but she has reportedly resigned. Xbox Game Studios head Matt Booty will be promoted to chief content officer and work alongside Sharma.
Sarah Bond
Highlights of Spencer’s email to employees
Spencer wrote in an email to Microsoft employees:
"Last fall, I told Satya Nadella that I was considering stepping down and starting a new chapter in my life. Since then, we have organized an orderly planning process around this transition to ensure a stable transition and build on the foundation we have built.
Xbox has never been just a business. It's a vibrant community of players, creators, and teams who love the content we create. As such, it deserves a thoughtful, well-planned blueprint for the future.
Today marks an exciting new chapter for Microsoft Gaming - Asha Sharma will serve as CEO. I want to be the first to welcome her to this incredible team. Working with her over the past few months has given me a lot of confidence. She possesses genuine curiosity, clear thinking, and a deep commitment to understanding players, creators, and the critical decisions that shape the future.
We know this is an important moment for our fans, partners and team, and we're committed to getting it right. I will remain as an advisor until this summer to assist with a smooth transition. "
Spencer's Statement on X
"It's rare in life to know clearly when a chapter ends, but after 38 years at Microsoft, the moment has arrived. I have decided to retire and start a new phase in my life. This is a milestone and a chance to look back on this incredible journey.
I'm excited for Asha Sharma to take over as CEO. She will join a team full of talent and passion, dedicated to serving players. Seeing her curiosity and pragmatism build on the foundation we've built gives me confidence that the Xbox community will be well-supported into the future.
Thinking back to when I joined Microsoft as an intern in 1988, I never imagined the path ahead. I'm lucky to work with so many passionate creators, partners, colleagues, and players - they challenge me, inspire me, and make this job a joy and wonder. Thank you to everyone who has been a part of this journey, this community means more to me than I can express.
Going forward, I'll still be doing what I've always loved: cheering on the teams that push the industry forward and playing games with this incredible community. See you online. "
Asha Sharma: Xbox’s three major promises for the future
Sharma said in an email to employees that her top priority: understand what makes Xbox successful and protect it.
She proposed that Xbox’s future success requires three commitments:
Sharma said that Xbox must make three promises to ensure future success, the first of which is "excellent games."
"It all starts here," she said. "Before we do anything else, we have to have a great game that players love. Unforgettable characters, a touching story, innovative gameplay and great creativity."
We will empower our studios, invest in classic IP, and support bold and innovative concepts. We will bear the risk. We will enter new areas and markets where we will create real value, and it will all be based on what players care about most. "
I promote Matt Booty in recognition of this dedication. He understands the craft and challenges of making great games, has led teams to create award-winning titles, and has earned the trust of game developers in the industry. "
The second promises "the return of Xbox" while maintaining the brand's current policy of multi-platform releases.
"We are recommitting ourselves to our core Xbox fans and players, the ones who have grown with us over the past 25 years, and the developers who have built the vast worlds and experiences that players around the world love," she explained.
"We're celebrating our roots with a renewed commitment to Xbox, starting with the console that shaped us today. It connects us to the players and fans who invest in Xbox, and to the developers who create ambitious gaming experiences for Xbox."
"Today, games are no longer limited to any single piece of hardware, but can run across devices. As we expand to PC, mobile devices and the cloud, Xbox should deliver experiences that are seamless, instant and aligned with the expectations of the player base we serve. We will break down barriers so developers can build once and reach players around the world, without any compromises."
Finally, Sharma said Xbox is committed to "the future of gaming,"She specifically stated that Xbox would not focus on "soulless AI garbage," which is noteworthy considering she is about to leave her position at CoreAI.
“We are witnessing a reshaping of the way we play,” she wrote. "To keep pace with the times, we will make full use of what we already have - iconic teams, characters and a world that people love - to create new business models and new ways to play."
"But we won't treat these worlds as static intellectual property to be raked in at will. We will build a shared platform and tools that allow developers and players to create and share their own stories."
"As commercialization and AI evolve, and their impact on the future, we will not pursue short-term efficiencies, nor will we flood our ecosystem with soulless AI garbage. Games are, and will always be, art, crafted by humans and created using the most advanced technology we have to offer."
Last July, Microsoft denied suggestions that Phil Spencer was stepping down and said the executive would not be retiring "any time soon."If Spencer's recent emails are true, he informed Microsoft CEO Nadella of his retirement plans as early as "last fall."
Spencer, who turns 58 in January, has been with Microsoft since 1988. He joined the Xbox team in 2001 and later served as general manager of Microsoft Studios in 2008. In 2014, Spencer was promoted to head of Xbox, Xbox Live, now-defunct Groove Music, Movies & TV, and Microsoft Studios.
It was during this time that Spencer tried to stabilize the ship after the Xbox One's disastrous launch and Don Mattrick's firing. In 2022, Spencer will be promoted again to CEO of Microsoft's gaming department. At the same time, Microsoft announced its intention to acquire Activision Blizzard.
In another email to Microsoft employees, Nadella said: "I want to thank Phil for his outstanding leadership and collaborative spirit. In his 38 years at Microsoft, including 12 years leading the gaming business, Phil helped us change what we do and how we work."