Microsoft Gaming is entering a new era. Phil Spencer, the veteran executive who spent 12 years leading the company's gaming division, is retiring — and Microsoft CEO Satya Nadella has named Asha Sharma, a former Meta Vice President and Instacart COO, as the new Executive Vice President and CEO of Microsoft Gaming.

Announcing the leadership change via an internal email to Microsoft staff, Nadella was unequivocal in his enthusiasm for the appointment. Sharma, who has spent the past two years at Microsoft, brings a track record of building and scaling consumer platforms at global scale — experience Nadella described as "critical in leading our gaming business into its next era of growth." Her background spans senior roles at two of the world's most recognised consumer tech companies, giving her a broad foundation to lead a gaming division that now reaches over 500 million monthly active users.

Alongside Sharma's appointment, Matt Booty — who has overseen the growth of Microsoft Gaming's studio network to nearly 40 studios spanning Xbox, Bethesda, Activision Blizzard, and King — will take on the role of Executive Vice President and Chief Content Officer, reporting to Sharma. The pairing of Sharma's platform and business expertise with Booty's deep gaming pedigree is being positioned as a deliberate strategy to balance commercial ambition with creative credibility.

Phil Spencer's departure marks the end of a transformative chapter for Microsoft Gaming. Over his 38 years at Microsoft — 12 of them at the helm of the gaming business — Spencer nearly tripled the division's revenue, shepherded the landmark acquisitions of Activision Blizzard, ZeniMax, and Minecraft, and expanded Xbox's footprint across PC, mobile, and cloud. Nadella paid warm tribute, writing that he had "long admired Phil's unwavering commitment to players, creators, and his team." Spencer will remain involved in an advisory capacity during the transition.

The leadership change comes as Xbox marks its 25th anniversary — and as Microsoft's gaming ambitions grow increasingly central to its broader consumer strategy. With a content pipeline spanning beloved franchises including Halo, Call of Duty, The Elder Scrolls, World of Warcraft, Fallout, and Candy Crush, the new leadership team inherits both a formidable portfolio and the pressure to sustain its momentum in an increasingly competitive global gaming market.