Microsoft is entering a new era at Xbox.
The company has appointed Asha Sharma, a leader within its Core AI division, as the new CEO of Microsoft Gaming and Xbox following the retirement of longtime executive Phil Spencer. Spencer’s departure was announced to employees in a memo on Friday, February 20, marking the end of his 38-year run with the company.
In the internal message, Microsoft CEO Satya Nadella confirmed the transition. “I’m excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming,” he wrote, adding, “I want to thank Phil for his extraordinary leadership and partnership.”
Sharma, 37, also addressed employees in the memo, acknowledging the weight of stepping into the role. She said her first priority is to “understand what makes this work and protect it.” She added that she plans to focus on creating “great games beloved by players,” to “recommit to our core Xbox fans and players,” and to help shape the industry’s future by working to “invent new business models and new ways to play.”
Still, the leadership shift hasn’t been met without skepticism—particularly given Sharma’s background in AI. On X (formerly Twitter), where she introduced herself in the new role, some users voiced concern about what an AI-focused executive might mean for the gaming giant.
Today I begin my role as CEO of @Xbox. Here are my three commitments:1/ GREAT games2/ Return of @Xbox 3/ Future of play t.co/6UNrpFm1Ki
— Asha (@asha_shar) February 20, 2026“-Doesn’t play video games -Heavily pushes A.I. in video games -Literally no experience in the gaming industry -Worked for Meta, Home Depot, & Insta-Cart. I have zero confidence and trust!” one user wrote.
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Another user added, “pls keep the AI / copilot stuff out of xbox thanks.”
Not all reactions were negative, though. “I’m interested to see how you shape the future of Xbox. I’m admittedly a bit worried coming from an AI background but you saying you are recommitting to the core of Xbox and the community has me optimistic,” a third wrote.
Sharma responded directly to several replies with short but pointed messages like, “Heard,” and “I'm online and ready.”
For now, gamers are waiting to see whether those answers translate into action.
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