On Friday, Microsoft Gaming announced a major leadership change: longtime gaming executive Phil Spencer is retiring as CEO, and Asha Sharma, head of product development for Microsoft CoreAI, will step into the role.
Spencer, a fixture in the gaming community for decades, leaves behind a legacy of growth, innovation, and community engagement. Sharma, acknowledging the weight of stepping into such big shoes, told Variety she has “deep respect” for Spencer’s leadership and the foundation he’s leaving for her and newly appointed Chief Content Officer Matt Booty.
Sharma’s Vision for Microsoft Gaming
In an internal memo announcing her promotion, Sharma laid out three main commitments to the gaming community:
- Great games – creating experiences with “deep emotional resonance” and “a distinct point of view.”
- The return of Xbox – strengthening the console’s presence and connection with players.
- The future of play – exploring emerging technologies and opportunities to evolve gaming as a platform.
When asked what makes a game “great,” Sharma referenced titles like Campo Santo’s 2016 first-person mystery Firewatch, highlighting her desire to develop games that make players “feel something.” Her approach emphasizes storytelling, emotional engagement, and unique perspectives rather than purely technical or commercial metrics.
An Outsider with a Platform Mindset
Though Sharma is entering the gaming industry as an outsider—her previous roles include top positions at Instacart and Meta—she expressed a commitment to staying “grounded in what the community is telling us.”
“I’m coming into gaming as a platform builder,” Sharma said. “My goal is to earn the right to be trusted by players and developers and to show the fanbase that consistency over time matters.”
Her appointment comes at a turbulent time for the industry. Sharma referenced Matthew Ball’s 2026 State of Video Gaming report, noting that the sector is undergoing a “transformation” that requires balancing innovation with core values.
Sharma on AI in Gaming
Given her extensive background in AI, some observers have speculated about her approach to generative AI in game development. Sharma was clear: she has “no tolerance for bad AI.” While she acknowledges that AI will remain part of gaming and can provide new “growth engines,” she emphasized that “great stories are created by humans.”
Looking Ahead
Sharma assumes leadership as Microsoft Gaming approaches its 25th anniversary this fall, framing it as an opportunity to honor the past while setting the stage for the next chapter. Major updates are expected at the GDC Festival of Gaming next March, along with announcements ahead of Xbox’s next Games Showcase in spring.
As Sharma takes the helm, the industry watches closely to see how a platform-focused, AI-informed outsider will steer one of gaming’s most influential companies through its next era.