- Phil Spencer steps down and retires from Microsoft
- Asha Sharma is the new EVP and CEO of Microsoft Gaming
- She’ll provide the new leadership and direction of everything Xbox gaming
It’s a new dawn for Xbox and its millions of devoted fans. Microsoft announced on Friday (February 20) that longtime Xbox chief Phil Spencer is retiring and Asha Sharma is stepping into the Microsoft Gaming CEO rol.
Sharma joined Microsoft two years ago after previously serving as Instacart’s COO. Phil Spencer, who started as an intern, departs after 38 years with Microsoft, the last dozen of which he led Microsoft’s gaming efforts.
Under his leadership, the Xbox business was transformed, marked by a focus, perhaps, less on hardware and more on the platform as a service. He expanded Game Pass and, on the platform, launched several “Day One” releases. The Xbox Network, formerly Xbox live currently has over 500 million monthly active users. Spencer oversaw the acquisitions of Activision and Minecraft, and the release of major game franchises like Halo, Forza, and Gears of War.
Spencer also owns the widely derided Game Pass price hikes, which drove monthly fees up 50%, from $19.99 a month to $29.99 a month, and his laser focus on cloud-based services has left some worried the once vaunted Xbox console is now a second-glass citizen in the Xbox gaming ecosystem.
Yes, Xbox, No, AI
Clearly aware of these and other criticisms, Asha Sharma promised in a blog post, “the return of Xbox.”
“We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it,” wrote Sharma.
That’s good news for Xbox fans, but Xbox faces an uphill battle with the current console holding, according to Quantumrun, just under 31% marketshare compared to PS5.
Sharma, though, is not promising a pure return to hardware first. As she notes in her company message, “Gaming now lives across devices, not within the limits of any single piece of hardware. As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve.”
That sounds like more cloud-based device-agnostic services.
Sharma also touched on the most controversial tech topic: AI, and makes a commitment to content created by people.
We will not chase short-term efficiency or flood our ecosystem with soulless AI slop
Microsoft Gaming CEO Asha Sharma
“As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
While it’s not yet clear how Sharma and her recently promoted lieutenant, Microsoft Games Chief Content Officer Matt Booty, plan to achieve these goals, there’s no shortage of enthusiasm, “I want to return to the renegade spirit that built Xbox in the first place,” wrote Sharma.
“Together, Asha and Matt have the right combination of consumer product leadership and gaming depth to push our platform innovation and content pipeline forward,” wrote Microsoft CEO Satya in his message to staff.
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lance.ulanoff@futurenet.com (Lance Ulanoff)
