Phil Spencer Steps Down as Xbox CEO, Sarah Bond Resigns

Major Leadership Transition at Xbox

Phil Spencer is stepping down as Xbox CEO and will be replaced by Asha Sharma, who joined Microsoft in 2024 as President of CoreAI. Sarah Bond, Xbox president since 2023 and previously regarded as Spencer's heir apparent, has resigned from her role.

Spencer announced his intentions last fall. "Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life," Spencer said. He will remain in an advisory role through the summer to support the transition.

Matt Booty, current head of Xbox Game Studios, will be promoted to chief content officer as part of the restructuring.

Spencer's Legacy

Spencer spent his entire career at Microsoft, becoming Head of Xbox in 2014. Under his leadership, Xbox expanded Game Pass, acquired major studios including Bethesda and Activision Blizzard, and pushed for cross-platform play.

"Xbox has always been more than a business," Spencer said in a statement. "It's a vibrant community of players, creators, and teams who care deeply about what we build and how we build it."

Speaking about his successor, Spencer added: "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."

What's Next

Bond joined Xbox in 2017 as VP overseeing partnerships before rising to president. Her departure alongside Spencer marks a significant shift in Xbox's executive structure.

Sharma's background in AI rather than traditional gaming has raised questions about Microsoft's strategic direction for the Xbox brand.

What do you think this leadership change means for Xbox's future?