2/23/2026 | USA | technology | ✓ Verified - theverge.com

Xbox shakeup: Phil Spencer and Sarah Bond are leaving Microsoft

📖 Full Retelling

Xbox ex boss and new Xbox boss | Image: Microsoft After nearly 40 years at Microsoft, Xbox chief and Microsoft Gaming CEO Phil Spencer is leaving the company, along with Xbox president Sarah Bond. Spencer’s retirement was announced in a memo from Microsoft CEO Satya Nadella on February 20th, stating, “Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning.” Tom Warren has more here on how it all went down, and why the news arrived when it did. Last summer, Microsoft responded to rumors of Spencer’s retirement , saying at the time that he was “not retiring anytime soon.” Microsoft’s CoreAI president, Asha Sharma, will be moving into Spencer’s former role as Microsoft Gaming CEO , while Matt Booty is being promoted to EVP and chief content officer. Follow along below for the latest updates on Microsoft’s Xbox leadership change s Inside Microsoft’s big Xbox leadership shake-up Read Xbox president Sarah Bond’s memo about leaving Microsoft. Microsoft says today’s Xbox shake-up doesn’t mean game studio layoffs Xslop? Read Microsoft gaming CEO Asha Sharma’s first memo on the future of Xbox Read Xbox chief Phil Spencer’s memo about leaving Microsoft Xbox chief Phil Spencer is leaving Microsoft Sarah Bond is leaving Xbox

📚 Related People & Topics

Sarah Bond

Classicist

Sarah Emily Bond is the Erling B. "Jack" Holtsmark Associate Professor of History at the University of Iowa. Her research focuses on late Roman history, epigraphy, law, topography, GIS, and digital humanities.

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Philip Spencer

Topics referred to by the same term

Philip or Phil Spencer may refer to:

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Deep Analysis

Why It Matters

Phil Spencer and Sarah Bond's departures signal a major leadership shift in Microsoft Gaming, potentially altering Xbox strategy and studio stability. The move also reflects Microsoft's broader focus on AI and cross-platform integration.

Context & Background

Spencer led Xbox for 12 years
Bond was president and COO
Asha Sharma will replace Spencer
Matt Booty promoted to EVP
Microsoft aims to integrate Windows and Xbox

What Happens Next

Microsoft will continue to oversee existing studios with no immediate layoffs, while Asha Sharma will steer the gaming division toward AI-driven development and cross-device experiences. The company will likely announce new strategic initiatives and evaluate studio performance in the coming months.

Frequently Asked Questions

Will Xbox studios face layoffs?

Microsoft has stated there are no organizational changes for studios at this time.

What is Asha Sharma's background?

She was president of CoreAI product and previously COO of Instacart and worked at Meta.

How will the leadership change affect Xbox's product roadmap?

The focus will shift toward integrating AI tools and expanding cross-platform capabilities, but core game releases remain on schedule.

Will Sarah Bond remain involved?

She will serve as special advisor to Asha Sharma to ensure a smooth transition.

Original Source

              Gaming Updated Today, Feb 23, 2026, 3:10 PM UTC Xbox shakeup: Phil Spencer and Sarah Bond are leaving Microsoft by Stevie Bonifield After nearly 40 years at Microsoft, Xbox chief and Microsoft Gaming CEO Phil Spencer is leaving the company, along with Xbox president Sarah Bond. Spencer’s retirement was announced in a memo from Microsoft CEO Satya Nadella on February 20th, stating, “Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning.” Tom Warren has more here on how it all went down, and why the news arrived when it did. Last summer, Microsoft responded to rumors of Spencer’s retirement , saying at the time that he was “not retiring anytime soon.” Microsoft’s CoreAI president, Asha Sharma, will be moving into Spencer’s former role as Microsoft Gaming CEO , while Matt Booty is being promoted to EVP and chief content officer. Follow along below for the latest updates on Microsoft’s Xbox leadership change s Highlights Inside Microsoft’s big Xbox leadership shake-up Today, 17 minutes ago Tom Warren Inside Microsoft’s big Xbox leadership shake-up Image: Microsoft Xbox fans had been anticipating the retirement of Microsoft Gaming CEO Phil Spencer for years, but what most hadn’t expected was the departure of Xbox president Sarah Bond too. For many outside the company, Bond seemed like Spencer’s natural successor, a deputy of sorts. Microsoft CEO Satya Nadella and Microsoft CFO Amy Hood clearly didn’t agree. Read Article > Feb 21 Richard Lawler Read Xbox president Sarah Bond’s memo about leaving Microsoft. Like Phil Spencer , Bond had a note for the employees at Xbox as she announced her departure, which she shared on LinkedIn Friday evening. Bond : I’ve decided this is the right time for me to take my next step, both personally and professionally. We’re living through a transformative technological era that will shape the next generation of our industry, and I’m energized by what’s ahead. This mo...
            

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