Earthquake at Microsoft. Phil Spencer is leaving, Xbox is in the hands of the AI chief.

Calendar 2/24/2026

Microsoft has confirmed massive changes in its gaming structures. Phil Spencer is retiring after nearly 40 years of work, and Sarah Bond is also saying goodbye to the Xbox division. Asha Sharma, who recently led the Core AI team, is taking over the entire gaming segment. This move could signify a new chapter in the history of the Xbox brand. The information was reported by Windows Central.

The End of Phil Spencer's Era

Phil Spencer was the face of Xbox for over a decade. He guided the brand through a difficult period following the launch of the Xbox One, expanded Xbox Game Pass, and oversaw major acquisitions, including Bethesda and Activision Blizzard. Since 2022, he served as CEO of Microsoft Gaming and reported directly to Satya Nadella. Although Spencer is retiring, he will support the company in an advisory role for several months to ensure a smooth transition of responsibilities. At the same time, Sarah Bond is also leaving the company, who was one of the architects of the multi-platform strategy and the development of cloud services.

What does this mean for gamers?

Microsoft assures that it remains long-term committed to the development of Xbox hardware and subscription services. At the same time, the console market is undergoing a transformation, and the lines between PC and consoles are increasingly blurred. The new leadership is expected to combine the traditional console model with a stronger use of AI and the development of services. The question is whether the generational change at the highest level will strengthen the brand or bring a period of transitional uncertainty.

The departure of Phil Spencer and Sarah Bond is one of the biggest shake-ups in Xbox history. The new CEO, Asha Sharma, symbolizes a turn towards artificial intelligence and services. Microsoft reassures that gaming remains a priority, but a completely new era is beginning for the brand.

Source: Windows Central

Katarzyna Petru Avatar
Katarzyna Petru

Journalist, reviewer, and columnist for the "ChooseTV" portal