• Source:JND

Microsoft has confirmed major leadership changes in its gaming division; they appointed AI executive Asha Sharma as the new chief executive officer of gaming. So, the company is shifting its Xbox focus back to folks who primarily use consoles, after spending a few years prioritising mobile and PC gaming. This news is a pretty big change for the Xbox team. It's happening because growth has slowed down, there have been layoffs, and there's more pressure to boost profits.

Sharma replaces long-time Xbox head Phil Spencer, who is retiring after leading the business since 2014 and serving as gaming CEO since 2022. Microsoft also confirmed that Xbox President Sarah Bond will exit the company. Meanwhile, Xbox Game Studios chief Matt Booty will step into the role of chief content officer, reporting directly to Sharma.

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In a blog post, Microsoft CEO Satya Nadella said Sharma was selected for her strong consumer and product background. She previously held leadership roles at Instacart and Meta Platforms and currently oversees Microsoft’s Core AI product group.

Console Focus After Years of Strategic Shifts

Microsoft's Xbox has really changed a lot over the last ten years. They've pushed beyond just the console, aiming for PC and mobile gamers, and even made huge buys like snapping up Activision Blizzard for $69 billion. But not all the die-hard Xbox fans have loved these changes, and the boom in mobile gaming has cooled off a bit. Sadly, Microsoft has had to let go of over 2,500 gaming staff since 2024 and close studios, including Arkane Austin and Tango Gameworks.

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In an internal email, Sharma said Microsoft would “recommit to our core Xbox fans” and renew its focus on console gaming, calling it the foundation of the Xbox identity.

Xbox sales have stalled since the launch of Xbox. One in 2013, which Spencer previously admitted “lost the worst generation to lose.” Efforts to offset hardware risks through Game Pass subscriptions helped initially but later slowed, prompting a 50 per cent price hike. With CFO Amy Hood pushing for stronger margins, executives have reportedly set a 30 per cent profitability target for the division.


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