Microsoft has appointed Asha Sharma as Executive Vice President and CEO of Microsoft Gaming, effective . Sharma succeeds Phil Spencer, who is retiring after 38 years with the company. The move comes as Microsoft navigates a challenging period for its Xbox business, marked by a nearly 10% revenue decline in the December quarter and an unspecified impairment charge in its gaming division.
Sharma’s appointment signals a shift in leadership for the gaming giant, particularly given her background. She joins Microsoft from Instacart, where she served as Chief Operating Officer, and previously held a Vice President role at Meta. Her experience centers on scaling services to billions of users and fostering thriving consumer and developer ecosystems – skills Microsoft CEO Satya Nadella believes are “critical in leading our gaming business into its next era of growth.”
Nadella emphasized the enduring importance of gaming to Microsoft, noting its presence since the company’s early days. He highlighted the growth of the Xbox platform to over 500 million monthly active users and its position as a top publisher across multiple platforms. “I am long on gaming and its role at the center of our consumer ambition,” Nadella stated in a message to employees.
The leadership restructuring extends beyond the CEO position. Matt Booty has been promoted to Executive Vice President and Chief Content Officer, reporting directly to Sharma. Booty’s career has been deeply rooted in gaming, overseeing the expansion of Microsoft Gaming to encompass nearly 40 studios, including Xbox, Bethesda, Activision Blizzard, and King. These studios are responsible for iconic franchises such as Halo, The Elder Scrolls, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.
The transition follows a period of significant investment in gaming for Microsoft, most notably the $75 billion acquisition of Activision Blizzard in 2023. While the acquisition aimed to bolster Microsoft’s position in the gaming market, the company has faced challenges integrating the new assets and navigating the evolving landscape of game distribution, including cloud gaming services.
The timing of Spencer’s retirement and Sharma’s appointment has raised some concerns among Xbox fans, particularly given Sharma’s relative lack of direct experience within the gaming industry. Reports indicate some apprehension regarding her background in AI and consumer platforms, questioning how her expertise will translate to the specific demands of the gaming sector.
However, Nadella’s confidence in Sharma’s ability to combine consumer product leadership with gaming depth suggests a strategic vision for the future of Microsoft Gaming. The company is betting on Sharma’s experience in building and scaling platforms to drive innovation in gaming hardware, content, and community engagement.
The appointment has garnered attention beyond the tech industry. Anand Mahindra, Chairman of Mahindra Group, publicly congratulated Sharma on her new role, highlighting her vision for gaming. This recognition underscores the growing cultural and economic significance of the gaming industry.
The challenges facing Microsoft Gaming are multifaceted. Competition from Sony’s PlayStation and Nintendo’s Switch remains fierce, and the current generation of Xbox consoles has not achieved the same level of popularity. The company has been forced to shutter some studios working on new games, signaling a need for strategic realignment.
Sharma’s initial focus will likely be on streamlining operations, optimizing the integration of Activision Blizzard, and charting a course for future hardware and software development. Her success will depend on her ability to navigate these challenges while fostering a strong relationship with both developers and players. The industry will be watching closely to see how her leadership shapes the future of Xbox and Microsoft’s broader gaming ambitions.
The move also comes amidst broader leadership changes at Microsoft, including the departures of Chris Young and Thomas Dohmke in 2025, and Charlie Bell’s transition to an individual contributor role earlier this month. These shifts suggest a period of internal restructuring as Microsoft adapts to a rapidly changing technological landscape.
