Major Xbox Leadership Change: Phil Spencer And Sarah Bond Step Away

Another major shake-up has occurred in Xbox's gaming division, as long-time leader Phil Spencer has decided to retire after 25 years. He is not the only one. Sarah Bond, Xbox's president, has also stepped away. Spencer began his tenure with Xbox full time in 2001, taking over as president of the gaming division in 2014. Under his leadership, he stepped in for Don Mattrick, following what was at the time a disastrous presentation and launch of the Xbox One. Pivoting towards a different marketing strategy with Game Pass and Xbox Live, the brand operated at a loss for future gain, but had long lost their grasp as industry leaders. Phil Spencer left a statement in wake of this news:

It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been fortunate enough to share with so many of you.

I’m excited for [Asha Sharma] as she steps into the CEO role. She’s joining an incredible group of people; teams full of talent, heart, and a deep commitment to the players they serve. Watching her lean in with curiosity and a real desire to strengthen the foundation we've built gives me confidence that our Xbox communities will be well supported in the years ahead.

Thinking back to my start as an intern in 1988, I never could have imagined the path ahead. I’ve been lucky to work with so many passionate creators, partners, colleagues, and players across the industry; people who challenged me, taught me, and made this work full of joy and wonder. Thank you to everyone who’s been part of this chapter. This community has meant more to me than I can say.

From here, I’ll keep doing what’s always mattered so much to me: cheering on the teams pushing this industry forward and playing alongside this incredible community. I'll see you online.

Sarah Bond, who had worked with Microsoft since 2017, was promoted as President of Xbox in 2023 following the $69 billion dollar acquisition of Activision Blizzard. This shift saw an entire restructuring of Xbox's games division, and it seemed like the brand was going to place an identity into focus. What proceeded to follow was a long line of layoffs (over 15,000 employees in 2025), studio closures (Arkane Studios Austin saw its doors shut in 2024, following the launch and underperformance of Redfall). Even critically acclaimed software like Tango Gameworks' Hi-Fi Rush, which lacked major marketing and was simply released on Game Pass with no fanfare, was deemed not a part of their future, and the studio was sold off to Krafton.

Asha Sharma, former head of Core A.I. Product, will step in as CEO and EVP of Microsoft Gaming. In her statement, Sharma spoke about prioritizing "humility and urgency". And the "return of Xbox".

"We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world," Sharma said in a statement. "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."

Matt Booty steps in as EVP and Chief Content Officer. He also left a statement in wake of the new position:

"We have good reasons to believe in what’s ahead. This organization and its franchises have navigated change for decades, and our strength comes from teams who know how to adapt and keep delivering. That confidence is grounded in a strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building."

Since the Activision Blizzard purchase, it certainly solidifies Xbox's brand as a lucrative venture. If the company has seen anything that has proven t be a challenge is how to exactly market the Xbox console as necessity to own. With ports of software to PC, and Game Pass being available on multiple platforms, along with the porting of games once marketed as exclusives, Microsoft was ahead of the curve of the accessibility expansion. But the core identity behind their games has been an enigma to consumers. With constant layoffs in the midst of corporate restructuring, more price hikes to the Game Pass service, another shift in leadership in less than four years, and already talks of another console in development makes for a future that's hard to predict.

SOURCES: Microsoft, CNBC