REDMOND, Washington, February 20, 2026 – Phil Spencer, who has led Microsoft’s Xbox division for over a decade, announced his retirement Friday after nearly 40 years with the company.
Capping an era defined by major acquisitions and the expansion of Game Pass. Xbox President Sarah Bond is also departing, with Asha Sharma named the new CEO of Microsoft Gaming.
CEO Satya Nadella shared the news in an internal memo, praising Spencer’s “extraordinary leadership.” Spencer, who joined Microsoft as an intern in 1988, oversaw acquisitions including Mojang (Minecraft), ZeniMax (Bethesda), and Activision Blizzard, and grew Xbox into a multi-platform ecosystem. His retirement takes effect February 23, after which he will advise through summer.
Sharma, who rejoined Microsoft in 2024 after roles at Meta and Instacart, will prioritize “great games” and Xbox’s console heritage. “We will recommit to our core Xbox fans and players,” she wrote in her memo.
Matt Booty advances to EVP and chief content officer, focusing on studios. Bond, instrumental in Game Pass and hardware launches, leaves for new opportunities.
Nadella emphasized stability: “We’ve been talking about succession planning.” No layoffs are planned, per Microsoft.
The changes come amid Xbox’s strategic pivot, including multi-platform releases and AI integration. Spencer’s tenure navigated industry shifts, but recent challenges like Game Pass subscriber growth slowdowns prompted questions about direction.
