Microsoft Gaming Leadership Shake-Up: Phil Spencer to Retire, Asha Sharma Named CEO
Microsoft has announced a major leadership transition in its gaming division, with longtime executive set to retire and appointed as Executive Vice President and CEO of Microsoft Gaming. The announcement was made by Microsoft CEO in an internal message to staff, signalling a new phase for one of the company’s most strategic businesses.
Nadella confirmed that Asha Sharma will lead Microsoft’s gaming operations, reporting directly to him. He highlighted her experience in scaling global platforms, noting her previous leadership roles as Chief Operating Officer at Instacart and Vice President at Meta. According to Nadella, Sharma’s expertise in consumer ecosystems and developer platforms will be central to Microsoft Gaming’s next growth cycle.
The leadership change follows Spencer’s decision last year to retire after nearly four decades at Microsoft, including 12 years at the helm of the gaming division.
Under Spencer’s leadership, Microsoft expanded its gaming presence across PC, mobile and cloud, significantly increasing the division’s scale. His tenure was defined by major acquisitions, including , and the continued growth of franchises linked to . Nadella credited Spencer with nearly tripling the size of the business and strengthening studio culture across platforms.
The transition comes as Microsoft approaches the 25th anniversary of Xbox, a milestone that reflects the company’s evolution from console maker to multi-platform gaming ecosystem serving hundreds of millions of players globally.
Alongside Sharma’s appointment, will become Executive Vice President and Chief Content Officer, overseeing a network of nearly 40 studios spanning Xbox, Bethesda, Activision Blizzard and King. These studios produce major franchises including Halo, Call of Duty, World of Warcraft, Diablo, Candy Crush and Fallout, reinforcing Microsoft’s position as a top global publisher.
Industry analysts view the leadership shift as part of Microsoft’s broader strategy to integrate content, cloud infrastructure and subscription services, especially as competition intensifies across console, mobile and streaming gaming markets.
Spencer will remain involved during the transition to support Sharma, ensuring continuity across platform innovation and studio operations. With gaming now central to Microsoft’s consumer strategy, expectations are high that the new leadership will focus on expanding cloud gaming, strengthening first-party content and deepening cross-platform reach.