Microsoft has named Asha Sharma as Executive Vice President and CEO of Microsoft Gaming, marking a major leadership transition for the company’s gaming business as longtime executive Phil Spencer steps down.
In a message to employees, Microsoft Chairman and CEO Satya Nadella said gaming has been central to Microsoft since its early days, referencing the launch of Microsoft Flight Simulator before Windows and the evolution from DirectX in the 1990s to today’s accelerated-compute era.
As the company celebrates 25 years of Xbox, Nadella said Microsoft Gaming now reaches more than 500 million monthly active users and is a top publisher across platforms, spanning console, PC, mobile and cloud.
Sharma, who joined Microsoft two years ago and previously served as Chief Operating Officer at Instacart and Vice President at Meta, will report directly to Nadella. He said she brings experience building and scaling global platforms, aligning business models for long-term value, and operating at global scale.
As part of the transition, Matt Booty has been promoted to Executive Vice President and Chief Content Officer, reporting to Sharma. Booty oversees a studios organization that spans nearly 40 teams across Xbox, Bethesda Softworks, Activision Blizzard and King. Those studios are behind franchises including Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush Saga and Fallout.
Nadella credited Spencer with transforming the gaming division during his 38 years at Microsoft, including 12 years leading gaming. During that time, Microsoft expanded its reach across PC, mobile and cloud, nearly tripled the size of the business, and completed major acquisitions such as ZeniMax Media and Activision Blizzard, as well as the acquisition of Minecraft.
Spencer will remain in an advisory role through the summer to ensure a smooth transition. As part of the leadership changes, Sarah Bond has decided to leave Microsoft to pursue a new chapter.
In her message to employees, Sharma said she feels both humility and urgency stepping into the role at a time of rapid change in the gaming industry. She outlined three core commitments for Microsoft Gaming going forward: delivering great games, recommitting to Xbox’s console roots while expanding seamlessly across devices, and inventing new ways to play.
On content, Sharma emphasized empowering studios, investing in iconic franchises and backing bold new ideas, including entering new categories and markets grounded in player demand. She said Booty’s promotion reflects a commitment to creative excellence and trust with developers.
Sharma also signaled a renewed focus on Xbox’s console heritage while acknowledging that gaming now spans PC, mobile and cloud. She said the company aims to break down barriers so developers can build once and reach players everywhere.
Looking to the future, Sharma addressed the evolving role of monetization and artificial intelligence in gaming, stressing that Microsoft will not prioritize short-term efficiency or flood its ecosystem with low-quality AI-generated content. She described games as art crafted by humans, supported by innovative technology.
Booty, in his own note to employees, expressed confidence in the strength of Microsoft’s studios and franchise pipeline, saying there are no organizational changes underway for the studios organization.
The leadership transition comes as Microsoft seeks to define the next 25 years of Xbox and position its gaming business for continued growth across hardware, content and platform innovation.
KEY QUOTES:
“Gaming has been part of Microsoft from the start. Flight Simulator shipped before Windows, and you can practically ray-trace a line from DirectX in the ’90s to the accelerated-compute era we’re in today. As we celebrate Xbox’s 25th year, the opportunity and innovation agenda in front of us is expansive. Today we reach over 500 million monthly active users, are a top publisher across all platforms, and continue to innovate across gaming hardware, content, and community, in service of creators and players everywhere. I am long on gaming and its role at the center of our consumer ambition, and as we look ahead, I’m excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, reporting to me. … Please join me in congratulating Asha and Matt on their new roles, and in thanking Phil for everything he has done for Microsoft and for our industry.”
Satya Nadella, Chairman And CEO, Microsoft
“When I walked through Microsoft’s doors as an intern in June of 1988, I could never have imagined the products I’d help build, the players and customers we’d serve, or the extraordinary teams I’d be lucky enough to join. It’s been an epic ride and truly the privilege of a lifetime. … I’m incredibly proud of what we’ve built together over the last 25 years, and I have complete confidence in all of you and in the opportunities ahead. I’ll be cheering you on in this next chapter as Xbox’s proudest fan and player.”
Phil Spencer, Outgoing Head Of Microsoft Gaming
“Today I begin my role as CEO of Microsoft Gaming. I feel two things at once: humility and urgency. … First, great games. … Second, the return of Xbox. … Third, future of play. … As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
Asha Sharma, Executive Vice President And CEO, Microsoft Gaming
“Looking forward, I’m excited to partner with Asha as our next CEO. … That confidence is grounded in a strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building. My focus is on supporting the teams and leaders we have in place and creating the conditions for them to do their best work. To be clear, there are no organizational changes underway for our studios.”
Matt Booty, Executive Vice President And Chief Content Officer, Microsoft Gaming
