Xbox boss steps down after 38 years at Microsoft Gaming
Microsoft announced that Phil Spencer, head of Microsoft Gaming (Xbox brand), is retiring after 38 years of service.
Microsoft announced that Phil Spencer, head of Microsoft Gaming (Xbox brand), is retiring after 38 years of service.
According to Reuters, this decision caused a major personnel reshuffle in the management, and it was made last year.
In Spencer’s place, the company appointed Microsoft CoreAI product president Asha Sharma, who joined Microsoft only in 2024. Thus, Sharma became the company’s vice president and general manager of the gaming division.
Sharma has already stated that he will refocus his attention on the Xbox console, aiming to «dedicate himself to the core Xbox fans and gamers.»
Microsoft Gaming is currently facing pressure from rising prices for Xbox hardware, with Microsoft reporting last month that its gaming revenue fell about 9,5% in the latest quarter.
Spencer, in turn, said he would remain as an advisor through the summer to ensure a smooth transition of the position.
«Last year, Phil Spencer decided to leave the company, and we’ve been talking about succession planning ever since,» said Microsoft CEO Satya Nadella.
The company also announced that Sarah Bond, Xbox’s chief operating officer, is also leaving the company.
Matt Booty, in turn, has been promoted to executive vice president and chief content officer of the gaming division. Booty will now report to Sharma.
«The leadership change is appropriate because it comes at a time when the technology underlying games is changing. As artificial intelligence becomes a more important element in game development, Microsoft needs a new generation of leaders to manage this transition,» concluded DA Davidson analyst Gil Luria.
As dev.ua wrote, a well-known insider previously predicted that the next generation Xbox would not be a console, but actually a PC with an interface for TVs.
We also wrote that Microsoft is conducting large-scale layoffs that will affect the company’s Xbox gaming division.
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