Xbox CEO Phil Spencer retires, Sarah Bond resigns, Microsoft AI exec now leads

Phil Spencer is officially retiring from Xbox on February 23, 2026, sources tell IGN's Ryan McCaffrey.

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It's an end of an era at Xbox. Phil Spencer, who has been with Xbox for decades, will leave Microsoft in just a few days' time. Xbox president Sarah Bond has also left the company. Microsoft AI boss Asha Sharma will now lead the Xbox games division, now called Microsoft Gaming, and Matt Booty is now Chief Content Officer (CCO), a promotion from his previous position as Xbox Game Studios head.

"I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it," Microsoft CEO Satya Nadella said in a memo to staff.

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Here's what Phil Spencer said in his farewell message:

"Last Fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we've built. Xbox has always been more than a business.

"It's a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.

"Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team.

"Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity and a deep commitment to understanding players, creators, and the decisions that shape our future.

"We know this is an important moment for our fans, partners, and team, and we're committed to getting it right. I'll remain in an advisory role through the summer to support a smooth handoff."