Asha Sharma to Take Over as CEO of Microsoft Gaming

A significant change is happening at the pinnacle of Microsoft’s gaming division, as Phil Spencer, the long-serving Xbox and Microsoft Gaming head, is stepping down from his role, effective February 23rd. Asha Sharma, the current President of Microsoft’s CoreAI, is poised to succeed him as the new CEO of Microsoft Gaming.

Sarah Bond, the President of Xbox and a potential successor to Spencer, has also resigned. In her place, Matt Booty, the head of Xbox Game Studios, is being promoted to Chief Content Officer.

Messages from all involved parties, except Bond, have been released by Microsoft. Spencer revealed that he had been contemplating retirement for some time and had been working closely with Sharma, his successor, for several months leading up to the transition.

“Last year, I discussed with Satya about my plans to step back and embark on a new chapter in my life. Since then, we have been aligned in our approach to this transition, focusing on stability and reinforcing the strong foundation we have built. Xbox has always been more than just a business; it is a thriving community of players, creators, and teams who are deeply passionate about our products and how we develop them. It is essential to have a thoughtful and deliberate plan for the future of Xbox,” Spencer stated.

“Today marks a new and exciting chapter for Microsoft Gaming as Asha Sharma assumes the role of CEO. I am thrilled to welcome her to this amazing team. Working closely with her in recent months has instilled in me great confidence in her abilities. She brings a genuine curiosity, clarity, and a profound commitment to understanding players, creators, and the strategic decisions that will shape our future. We understand the significance of this moment for our fans, partners, and team, and we are dedicated to ensuring a smooth transition. I will continue to provide advisory support through the summer,” Spencer added.

Sharma’s appointment may come as a surprise to some, given her AI background, which may raise concerns among gamers, particularly in light of the negative perception of generative AI.

“My primary objective is clear: to grasp the essence of this industry and safeguard its integrity. This begins with three fundamental commitments. Firstly, a focus on exceptional games. Everything revolves around this core principle. We must deliver outstanding games that resonate with players before anything else. Memorable characters, emotionally engaging stories, innovative gameplay, and creative excellence are at the forefront. We will empower our studios, invest in iconic franchises, and support innovative ideas. We are prepared to take risks, explore new genres and markets where we can add substantial value, all while staying true to what players value the most. I have appointed Matt Booty in recognition of this commitment. He possesses a deep understanding of game development, has led teams to deliver award-winning content, and has earned the trust of developers across the industry,” Sharma explained.

“Secondly, a recommitment to the Xbox brand. We are reaffirming our dedication to our loyal Xbox fans and players who have been with us for the past 25 years, as well as the developers who craft expansive worlds and experiences embraced by players worldwide. We will celebrate our heritage with a renewed focus on Xbox, beginning with the console that has defined our identity. It serves as a connection to our players and fans who invest in Xbox, as well as the developers who create ambitious experiences for the platform.

“Gaming now transcends devices, extending beyond the confines of any single hardware platform. As we expand across PC, mobile, and cloud, the Xbox experience should feel seamless, immediate, and reflective of the communities we serve. We aim to eliminate barriers so developers can create once and reach players everywhere without constraints,” Sharma continued.

“Thirdly, envisioning the future of gaming. We are witnessing a transformation in the way people engage with games. To meet this moment, we will introduce new business models and innovative play experiences by leveraging our existing strengths: iconic teams, characters, and worlds that are beloved by audiences. However, we will not treat these worlds as static intellectual properties to be exploited for profit. Instead, we will build a collaborative platform and tools that empower developers and players to craft and share their own narratives,” Sharma elaborated.

“As monetization methods and AI technologies evolve and shape the future of gaming, we will not prioritize short-term gains or inundate our ecosystem with soulless AI-generated content. Games are, and will always be, works of art, crafted by human hands and infused with cutting-edge technology provided by us,” Sharma concluded.

While there are some reassuring sentiments in Sharma’s statements, the assertion that her first task is to understand the current landscape may suggest a sense of urgency in her appointment. The extent of institutional changes that will follow remains to be seen.

Phil Spencer had led Microsoft’s gaming division for over a decade, assuming the role in 2014 and swiftly stabilizing the struggling console gaming business. He took decisive actions such as reducing the price of the Xbox One by removing the Kinect from the bundle, implementing player-friendly initiatives like backward compatibility, and revolutionizing the Xbox business model by promising simultaneous PC releases for Xbox games (available on Steam) and introducing Xbox Game Pass. Additionally, he oversaw Xbox exclusives expanding to PlayStation, breaking traditional barriers.

However, Spencer also faced challenges in recent years. The launch of the Xbox Series X|S did not go as smoothly as planned, with significant game delays, particularly the highly anticipated Halo Infinite. Acquisitions of studios took time to yield results, and Xbox Game Pass began to saturate the market, followed by price hikes for consoles and services.

Looking towards the future, Spencer’s decision to step down may be timely, as the Xbox brand currently appears somewhat undefined. Speculations abound regarding the nature of their next console, whether it will lean more towards a PC-like structure with rival storefronts or maintain a traditional approach. Microsoft is likely keen on incorporating AI technology, given their demonstrations of AI integration with games like Minecraft in recent years. However, with a new CEO at the helm, these strategies could undergo significant changes. Only time will tell.

Source: Microsoft