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Is this Xbox's turning point? Fans question Microsoft's new direction
Phil Spencer, who has been with Microsoft for nearly 40 years, will be succeeded by Asha Sharma

Is this Xbox's turning point? Fans question Microsoft's new direction

Feb 24, 2026
01:30 pm

What's the story

Microsoft has announced a major leadership change in its gaming division, with Phil Spencer (head of gaming division) and Sarah Bond (president of Xbox) stepping down from their respective roles. Spencer, who has been with Microsoft for nearly 40 years, will be succeeded by Asha Sharma, a former head of Microsoft's CoreAI division. The move comes after a tough year for Xbox marked by layoffs, poor sales, and rising development costs.

Internal changes

Concerns over Sharma's lack of gaming experience

Along with the leadership change, Xbox also announced the promotion of Matt Booty, former corporate vice president of Xbox Game Studios, to chief content officer. However, fans have expressed concerns over Sharma's appointment as Spencer's successor due to her lack of gaming and industry experience. Some even mocked her attempt to prove her credentials by sharing her Xbox Gamertag and recent gameplay history. Sharma has seemingly played 29 games, all in the past month or so.

Strategic pivot

Speculation about potential shift in Xbox's strategy

Sharma's appointment has sparked speculation about a possible shift in Xbox's strategy. Jez Corden from Windows Central suggested that Microsoft's decision to appoint Sharma over other executives could be due to her expertize in fields outside gaming. Victoria Phillips Kennedy from Eurogamer also wondered if Sharma's background would lead to a more aggressive adoption of AI in game development.

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AI perspective

Sharma addresses AI concerns

Despite the speculation, Sharma has clarified her position on AI in gaming. She said she wouldn't "flood our ecosystem with soulless AI slop" and emphasized that "games are and always will be art, crafted by humans." This statement comes amid concerns from some Xbox employees about the possibility of Sharma pushing for more AI integration into Xbox's operations.

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Legacy impact

Spencer's legacy at Microsoft and impact on Xbox

Spencer joined Microsoft as an intern in 1988 and rose through the ranks to become chief executive of Microsoft Gaming in 2022. He oversaw major acquisitions, including that of Minecraft creator Mojang and Call of Duty maker Activision Blizzard. His departure has left many wondering about the future direction of Xbox under Sharma's leadership.

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