Asha Sharma named new CEO of Microsoft Gaming

Microsoft has appointed Asha Sharma as the new head of its gaming division, replacing longtime leader Phil Spencer, who is retiring after 38 years at the company, the software giant announced on Friday.

Sharma, who previously led product development for AI models and services at Microsoft, becomes Executive Vice President and CEO of Microsoft Gaming. She previously held roles as Chief Operating Officer at Instacart and a Vice President at Meta.

"I am stepping into work shaped by generations of artists, engineers, designers, writers, musicians, operators and more who create worlds that have brought joy and deep personal meaning to hundreds of millions of players," Sharma said in an internal memo.

Spencer, who led the division for 12 years and oversaw major acquisitions including Activision Blizzard and ZeniMax, said he made the decision to retire last fall. He will remain in an advisory role through the summer to ensure a smooth transition.

Microsoft CEO Satya Nadella said in a statement: "I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it."

Matt Booty has been promoted to Executive Vice President and Chief Content Officer, reporting to Sharma. He previously led game content and studios. Sarah Bond, President and Chief Operating Officer at Xbox, is leaving the company.

Sharma outlined three priorities for the division: delivering great games, renewing focus on the Xbox console, and shaping the future of play. "We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years," she said.

The leadership change comes as Microsoft Gaming faces declining revenue, with gaming revenue falling around 9.5% in the December quarter, according to a report by Reuters on the matter. The division also faces competition from Sony's PlayStation and tariff-induced cost pressures.