Microsoft announced a significant leadership shakeup in its gaming division. Microsoft Gaming CEO Phil Spencer is departing the company, along with Xbox President Sarah Bond.
Spencer will be replaced by Asha Sharma, a former Instacart and Meta executive who most recently served as president of Microsoft’s CoreAI product group. Her appointment signals a stronger focus on artificial intelligence within Microsoft’s gaming strategy.
The company has already been experimenting with AI-driven gaming experiences, including an AI-powered gaming companion and an AI-generated level for Quake II that drew mixed reactions. In an internal memo published by The Verge, Sharma outlined a vision centered on innovation, writing that Microsoft will “invent new business models and new ways to play,” with both monetization and AI playing key roles in the future of gaming.
At the same time, Sharma sought to reassure developers and players, stating that the company will not chase short-term efficiency or overwhelm its ecosystem with low-quality AI content. “Games are and always will be art, crafted by humans,” she wrote, emphasizing that technology should enhance—not replace—human creativity.
In her memo, Sharma also made three core commitments: building great games that players love, prioritizing Xbox as a platform, and sha
Author: Mohammed Najem