Phil Spencer, Microsoft Gaming Head, Announces Retirement After 38-Year Tenure
In a significant development for the gaming industry, Phil Spencer is set to retire from Microsoft after a remarkable 38-year journey with the company. His tenure will officially end on Monday, February 23, 2026. The veteran Xbox head will pass the baton to Asha Sharma, the former president of Microsoft’s CoreAI division.
Spencer, who assumed the reins of Xbox in 2014 and later ascended to the position of CEO of Microsoft Gaming in 2022, hinted at his impending retirement last fall. Under his visionary leadership, Microsoft Gaming expanded to include nearly 40 studios, including Xbox, Bethesda, Activision Blizzard, and King. These studios are the birthplaces of iconic franchises like Halo, Call of Duty, and World of Warcraft.
“It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me,” Spencer stated. He will continue to guide the team in an advisory role through the summer to ensure a smooth transition.
In an unexpected turn of events, Xbox president Sarah Bond is also parting ways with the company. Meanwhile, Matt Booty has earned a promotion to the position of chief content officer. This leadership transition occurs as Xbox grapples with challenges, including a 9% drop in gaming business revenue in the December quarter. Sharma, a Microsoft recruit from Instacart in 2024, brings a wealth of AI and product development expertise to her new role.
Source: Microsoft Official Blog