The day that many feared would soon come has come: Microsoft CEO Satya Nadella has announced that Microsoft Gaming boss Phil Spencer and Xbox president Sarah Bond have decided to leave the company.

The official reason for Spencer's departure is a retirement after 38 years of service within the company, but the fact that both leave at the same time leaves little room for doubt: an organizational earthquake is underway in Xbox that confirms the profound transformation that Microsoft's gaming business is undergoing.

Phil's place will be filled by Asha Sharma, who joined Microsoft in 2024 and previously head of the CoreAI at Microsoft section, dedicated to the creation of AI-based tools. Matt Booty will remain at Xbox, taking on the role of Chief Content Officer.

This is the statement of Phil Spencer on Linkedin:

It's rare in life to know when a chapter is coming to an end, but after 38 years at Microsoft, that time has come for me. I decided to retire and start a new chapter in my life. It is an important milestone that has given me the opportunity to reflect on the incredible journey that I have been lucky enough to share with many of you.

I am excited for Asha Sharma, who is about to take on the role of CEO. He will be part of a group of incredible people, teams full of talent, passion, and deep commitment to the players they serve. Seeing her approach with curiosity and a sincere desire to strengthen the foundation we've built gives me confidence that our Xbox communities will be well supported for years to come.

Looking back on my beginnings as an intern in 1988, I could never have imagined the path that lay ahead. I have been fortunate enough to work with so many passionate creators, partners, colleagues, and gamers across the industry, people who have challenged me, taught me, and made this work full of joy and wonder.

Thank you to everyone who has been a part of this chapter. This community has meant more to me than I can put into words.

From here, I will continue to do what has always been so close to my heart: cheer on the teams that drive this industry forward and play together with this incredible community. See you online.

While this is the message that Phil sent internally to all Microsoft Gaming teams:

When I walked through the door of Microsoft as an intern in June 1988, I never imagined the products I would help build, the players and customers we would serve, or the amazing teams I would be fortunate enough to be a part of. It was an epic experience and truly a once-in-a-lifetime privilege.

Last fall, I told Satya that I was thinking about taking a step back and starting a new chapter in my life. Since then, we have decided to face this transition with determination, ensuring stability and strengthening the foundations we have built. Xbox has always been more than just a business. It's a vibrant community of players, creators, and teams who care about what we build and how we build it. And it deserves a thoughtful and deliberate plan for the future.

Today marks an exciting new chapter for Microsoft Gaming, with Asha Sharma taking on the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her in recent months has given me great confidence. She brings with her genuine curiosity, clarity, and a deep commitment to understanding the players, creators, and decisions that shape our future. We know this is an important time for our fans, partners, and team, and we're committed to doing it right. I will remain in a consulting role throughout the summer to ensure a smooth handover.

I am also grateful for the strength of our study organization. Matt Booty and our studio teams continue to build an incredible portfolio, and I have every confidence in the leadership and creative momentum of our global studios. I want to congratulate Matt on his promotion to EVP and Chief Content Officer.

As part of this transition, Sarah Bond has decided to leave Microsoft to start a new chapter. Sarah played a pivotal role during a pivotal time for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting the launch of new hardware, and leading some of the most significant moments in our history. I am grateful to her for her cooperation and the impact she has had, and I wish her all the best for her future.

But most importantly, to all of you at Microsoft Gaming, I want to say "thank you". I've learned so much from this team and community, grown with you, and been continually inspired by the creativity, courage, and caring you show every day to players, creators, and each other.

I am incredibly proud of what we have built together over the past 25 years and have full confidence in all of you and the opportunities that lie ahead. I will be cheering you on in this new chapter as a proud Xbox fan and gamer.

While here is an excerpt from the statement of the new CEO of Microsoft Gaming, Asha Sharma:

My first task is simple: to understand what makes this possible and protect it.

That starts with three commitments.

First: fantastic games.

It all starts here. Before we do anything, we need to have great games that players love. Unforgettable characters, stories that excite us, innovative gameplay and creative excellence. We will empower our studios, invest in iconic franchises, and support bold new ideas. We will take risks. We're going to enter new categories and markets where we can add real value, based on what players care about most.

I promoted Matt Booty in honor of this commitment. He understands the art and challenges of creating great games, has led teams that have delivered award-winning work, and earned the trust of game developers across the industry.

Second, the return of Xbox.

We're renewing our commitment to our most loyal Xbox fans and gamers who have invested in us over the past 25 years, and to the developers who create expanding universes and experiences that gamers around the world love.

We celebrate our roots with a renewed commitment to Xbox, starting with the console that shaped our identity. It connects us to the players and fans who invest in Xbox, and to the developers who create ambitious experiences for it.

Gaming now lives on different devices, no longer limited to a single piece of hardware. As we expand to PC, mobile, and the cloud, Xbox should feel seamless, immediate, and up to par with the communities we serve. We'll break down barriers so developers can create once and reach players anywhere without compromise.

Third, the future of gaming.

We're seeing the reinvention of gaming.

To seize the moment, we'll invent new business models and new ways to play, building on what we already have: iconic teams, characters, and worlds that people love. But we will not treat these worlds as static intellectual property to be exploited and monetized. We will build a shared platform and tools that will allow developers and players to create and share their own stories.

As monetization and AI evolve and influence this future, we won't chase efficiency in the short term or flood our ecosystem with soulless products made with AI. Games are and always will be art, made by humans and created with the most innovative technology we provide.

The next 25 years belong to the teams that have the courage to build something amazing, something that no one else is willing to try, and that have the patience to see it through. We've done it before, and I'm here to help us do it again. I want to go back to the rebellious spirit that led to the creation of Xbox. This will require you to question everything relentlessly, review processes, protect what works, and be brave enough to change what doesn't.

We await further news: we will update this news as soon as we know more.