Microsoft has named Asha Sharma as the new CEO of its gaming division, marking one of the most significant leadership changes in Xbox history. Sharma succeeds long-time gaming chief Phil Spencer, who is retiring after nearly four decades with the company and will remain as an advisor through the summer. Her appointment comes at a challenging time for Microsoft Gaming, as the company faces slowing revenue growth, rising costs and fierce competition in the global console and content markets.Sharma has been named executive vice president and CEO of Microsoft Gaming and will report directly to Microsoft Chairman and CEO Satya Nadella. In her first comments since the announcement, Sharma said she would refocus on Xbox’s core audience while navigating a rapidly changing gaming landscape shaped by subscriptions, cloud gaming and large-scale acquisitions.
Asha Sharma’s journey to becoming Microsoft’s gaming CEO
Prior to taking charge of Microsoft Gaming, Sharma held senior leadership roles at some of the world’s largest technology companies. At Microsoft, she most recently worked in AI platform and product leadership roles, which gave her direct exposure to the company’s broader efforts to advance the field of AI. Prior to that, she served as COO of Instacart and held product leadership roles at Meta. Her career has focused on scaling platforms, managing large teams, and guiding products through periods of rapid growth.Sharma was educated in the United States and holds a business degree from the University of Minnesota Carlson School of Management. While she is widely described as being of Indian descent, public biographies and official company disclosures provide only limited details about her family background or roots, and she has not spoken extensively in public about her personal history. However, her professional background places her firmly within the growing ranks of global technology leaders from diverse backgrounds.The leadership change comes as Microsoft’s gaming business faces multiple pressures. Gaming revenue has declined in recent quarters, hardware prices have risen due to cost pressures, and consumer spending remains uncertain. Meanwhile, Microsoft is still integrating Activision Blizzard, which it acquired in 2023 in a $69 billion deal that reshaped the company’s position in the gaming industry.Sharma’s background in operations, platforms and artificial intelligence suggests Microsoft is betting on a leader who can balance content, technology and business discipline.
Changes across the gaming sector
In addition to Sharma’s appointment, Microsoft also confirmed other top-level changes. Matt Booty has been promoted to chief content officer, overseeing game studios and games, while Sarah Bond is leaving the company to start a new chapter. Taken together, these moves signal a broader reorganization of Xbox’s leadership structure.Sharma takes over at a time when Xbox is re-evaluating its identity. Competition from Sony PlayStation remains fierce, especially in terms of console market share and exclusive games. Analysts will be watching closely to see whether Sharma prioritizes hardware, subscriptions, first-party content or deeper integration with Microsoft’s artificial intelligence and cloud businesses.
critical moment
Asha Sharma’s appointment marks the beginning of a new chapter in gaming at Microsoft. With Phil Spencer exiting and reshuffling its leadership team, the company has signaled a willingness to rethink strategy at a time when the global gaming industry is under pressure. How Sharma handles this transition will determine the direction of Xbox in the coming years.
