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Xbox Fans React as Phil Spencer and Sarah Bond Leave Microsoft

Asha Sharma replaces retiring Phil Spencer to lead Xbox, aiming to refocus on console gamers after layoffs of over 2,500 employees since 2024, Microsoft announced.

  • On Friday, Microsoft named AI executive Asha Sharma to lead its Xbox and gaming business, with Phil Spencer retiring after running Xbox since 2014, Microsoft CEO Satya Nadella announced.
  • Microsoft has focused on broadening beyond its core console audience to target PC and mobile gamers, including the US$69 billion Activision Blizzard purchase, which alienated long-time Xbox devotees.
  • Longtime Xbox fans are upset due to studio closures, canceled projects, and over 2,500 layoffs since 2024, industry tracker Obsidian reported.
  • Xbox president Sarah Bond will also leave, and Matt Booty will report to Sharma, who said in an e-mail, 'We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years.'
  • A slowed mobile gaming market and lagging plans complicate any push toward PC and mobile, while Sharma led about 100 engineers early last year to respond to China’s DeepSeek model.
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Forbes broke the news in United States on Saturday, February 21, 2026.
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