Microsoft Gaming Gets New CEO as Asha Sharma Replaces Phil Spencer in Strategic Leadership Transition

Indian-origin executive Asha Sharma has been appointed as the new CEO of Microsoft Gaming, replacing long-time gaming chief Phil Spencer, who is retiring after nearly 40 years with Microsoft. Sharma will report directly to Microsoft CEO Satya Nadella, marking a significant leadership shift in the company’s gaming division.

Before taking charge, Sharma was part of Microsoft’s AI platform and product leadership team and previously served as Chief Operating Officer at Instacart and held senior product leadership roles at Meta. A graduate of the Carlson School of Management at the University of Minnesota, she is widely regarded for her expertise in scaling businesses and steering organizations through transformative phases.

In her first official memo as CEO, Sharma expressed both “humility and urgency,” outlining three core promises: delivering great games, reviving and expanding the Xbox ecosystem, and shaping the future of gaming through innovation in AI and cloud technology. She emphasized empowering studios, investing in major franchises, supporting creative risks, and ensuring that AI enhances — rather than replaces — human creativity, cautioning against flooding the ecosystem with low-quality “AI slop.” As part of the restructuring, Matt Booty has been elevated to Chief Content Officer to oversee studios and new titles, while Spencer will remain in an advisory role until summer.

The transition comes at a crucial time for Microsoft Gaming as it navigates rising hardware costs, intense competition from rivals like Sony’s PlayStation division, and the integration of the $69 billion Activision Blizzard acquisition. Sharma’s elevation also highlights the growing presence of Indian-origin leaders within Nadella’s core team, signaling Microsoft’s intent to position gaming at the intersection of AI, cloud computing, and next-generation digital entertainment.