Phil Spencer retires as ex-Instacart COO takes top job at Microsoft Gaming

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Microsoft executive VP of gaming Phil Spencer is retiring after 38 years with the firm and 12 years leading its games division.

Spencer stepped into the top job following the departure of Don Mattrick. In his time, he’s spearheaded the company’s acquisition spree and launch of its Game Pass subscription service. He will remain at the firm in an advisory role through the summer.

The tech giant has appointed former Instacart COO and Meta VP Asha Sharma as the EVP and CEO of Microsoft Gaming in his place. Sharma has spent the last two years as the president of Microsoft’s CoreAI product.

Also out at the company is Xbox president and COO Sarah Bond, who leaves the role after two-and-a-half years and nearly nine years working with Xbox in total. No official reason was provided for her departure.

Rounding out the executive leadership changes, president for game content and studios Matt Booty has been promoted to the role of EVP and chief content officer for Microsoft Gaming.

Executive shakeup

“Together, Asha and Matt have the right combination of consumer product leadership and gaming depth to push our platform innovation and content pipeline forward,” said Microsoft CEO Satya Nadella.

“Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning. 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.”

He added: “We have extraordinary creative talent across our studios and a global platform that is second to none. I’m excited for how we will capture the opportunity ahead and define what comes next, while staying grounded in what players and creators value.”

Spencer commented: “Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff.”

“New business models”

Sharma stated: “We are witnessing the reinvention of play.

“To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love. But we will not treat those worlds as static IP to milk and monetise. We will build a shared platform and tools that empower developers and players to create and share their own stories.

“As monetisation 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.

“The next 25 years belong to the teams who dare to build something surprising, something no one else is willing to try, and have the patience to see it through. We have done this before, and I am here to help us do it again. I want to return to the renegade spirit that built Xbox in the first place. It will require us to relentlessly question everything, revisit processes, protect what works, and be brave enough to change what does not.”