Sharma spent four years in product leadership at Meta Platforms and earlier worked in Microsoft’s marketing team before leaving in 2013
Microsoft has appointed AI leader Asha Sharma to head its Xbox and broader gaming division, marking a major leadership shift as the company looks to refocus on console players after years of expanding into mobile and PC gaming.
The move comes with the retirement of longtime Xbox chief Phil Spencer, who has overseen the business since 2014 and was elevated to gaming CEO in 2022. The company also confirmed that Xbox President Sarah Bond will depart. Meanwhile, Xbox Game Studios head Matt Booty will step into the role of chief content officer and report directly to Sharma.
Microsoft CEO Satya Nadella said in a blog post that Sharma was selected for her strong consumer background. In her previous role at Microsoft, she led work spanning multiple AI models, AI agents, applications and developer tools.
Her track record includes a high-pressure push last year when China’s DeepSeek model triggered industry-wide urgency. According to Bloomberg, Sharma mobilised roughly 100 engineers to rapidly test the technology and deliver a version for Microsoft’s Azure cloud customers within days, responding to Nadella’s call for speed.
Before returning to Microsoft, Sharma served as chief operating officer at Instacart, where she helped steer the company through its IPO and sharpen its profitability strategy. She also spent four years in product leadership at Meta Platforms and earlier worked in Microsoft’s marketing team before leaving in 2013.
In a note to employees, Sharma struck a measured but forward-leaning tone about the road ahead.
“Dear team, Today I begin my role as CEO of Microsoft Gaming. I feel two things at once: humility and urgency. Humility because this team has built something extraordinary over decades. Urgency because gaming is in a period of rapid change, and we need to move with clarity and conviction.”
She outlined three priorities, “Great games”, “the return of Xbox,” and “future of play,” and addressed concerns around AI’s growing role in gaming.
“As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
Indian industrialist Anand Mahindra also congratulated Sharma on X, writing that her perspective “resonates deeply,” adding that games are not just entertainment but a blend of storytelling, design, music and community.
Your view of gaming as art resonates deeply.
Games aren’t just entertainment; they’re storytelling, design, music, community.
The canvas just happens to be interactive.
Congratulations Asha.
May fortune favour your journey…@asha_shar https://t.co/nB7M7B84L3
— anand mahindra (@anandmahindra) February 21, 2026
The leadership overhaul comes at a challenging moment for Microsoft Gaming. The division has been dealing with tariff-driven cost pressures, intense competition and cautious consumer spending, leading to recent price hikes on Xbox hardware. Microsoft last month reported gaming revenue declined about 9.5 per cent in the December quarter and disclosed impairment charges within the unit, according to Reuters.