Microsoft Appoints Asha Sharma as New Gaming CEO Amid Leadership Changes

Microsoft has announced that Phil Spencer, head of its gaming division, will retire after 38 years with the company. Asha Sharma, previously leading product development for AI models and services at Microsoft, has been appointed as the new executive vice president and CEO of Microsoft Gaming. Sharma expressed her commitment to refocusing on the Xbox console, aiming to "recommit to our core Xbox fans and players."

In addition to Spencer's retirement, Xbox President Sarah Bond has decided to leave the company. Matt Booty, formerly president of game content and studios at Microsoft, has been promoted to executive vice president and chief content officer, reporting directly to Sharma.

These leadership changes come as Microsoft Gaming faces challenges such as tariff-induced cost pressures, strong competition, and uncertain consumer spending, which have led to price increases on Xbox hardware. In the December quarter, the company reported a 9.5% decline in gaming revenue and recorded undisclosed impairment charges in the division.

Phil Spencer will remain in an advisory role through the summer to ensure a smooth transition.