Asha Sharma has been appointed Executive Vice President and Chief Executive Officer of Microsoft Gaming, one of the most influential roles in the global video game industry. Announced on February 20, 2026, the leadership change comes as Phil Spencer, who has led Microsoft’s gaming business for more than a decade, retires after 38 years with the company.

In a corporate blog post shared by Microsoft, CEO Satya Nadella formally communicated the transition to employees, praising Spencer’s legacy and introducing Sharma’s new leadership charge. Sharma will report directly to Nadella and oversee the full breadth of Microsoft Gaming’s business, which includes platform strategy, hardware, content studios, and community engagement.

Microsoft Gaming encompasses Xbox hardware, Xbox Game Pass services, and the company’s extensive portfolio of game studios, including holdings from Bethesda, Activision Blizzard, and King. Under Spencer’s tenure, the gaming division expanded its global reach, tripled business size, and finalized major acquisitions that brought blockbuster franchises like Halo, Call of Duty, and World of Warcraft into Microsoft’s ecosystem. Sharma’s appointment signals a new chapter as the business seeks renewed growth and strategic clarity in an increasingly competitive industry.

Before stepping into the CEO role, Sharma served as President of Microsoft’s CoreAI product organization, where she led efforts at the intersection of artificial intelligence and product strategy. Prior to joining Microsoft in 2024, she was Chief Operating Officer at Instacart and held leadership positions at Meta, where she helped scale major consumer platforms. While her background spans product, operations, and AI-driven services, her leadership now extends into one of the most culturally resonant segments of technology: video games.

In her first message to Microsoft Gaming staff, Sharma emphasized her appreciation for the legacy built over decades and outlined three strategic commitments. She highlighted the importance of prioritizing “great games,” reaffirming Xbox’s core console heritage, and shaping the “future of play,” including innovating across devices, cloud, and platform experiences.

Sharma inherits an organization with more than 500 million monthly users and nearly 40 internal and partner studios worldwide. As CEO, she must balance sustaining beloved franchises with investing in new creative directions and responding to evolving player behaviors across PC, console, and mobile markets. Her stated vision focuses on empowering studio creators and advancing platform cohesion without compromising the artistic and human elements of gaming.

The succession also brings changes across gaming leadership. Matt Booty, former head of Xbox Game Studios, has been promoted to Executive Vice President and Chief Content Officer, reporting to Sharma. Booty’s role focuses on driving creative output across Microsoft’s expansive studio ecosystem. Meanwhile, Sarah Bond, the outgoing President of Xbox, will be departing the company, part of the leadership reconfiguration announced alongside Spencer’s retirement.

Industry analysts view the transition as significant not just for Microsoft but for the broader gaming sector. Gaming is grappling with challenges including hardware adoption pressures, platform competition – particularly from Sony’s PlayStation and Nintendo – and evolving revenue models that span digital services and cloud-based experiences. Leadership with a strong product and operational background like Sharma’s reflects Microsoft’s broader strategic emphasis on integrated technology platforms and community-centric ecosystems.

For South Asian American representation in the tech and entertainment industries, Sharma’s appointment is notable. While many South Asian Americans have risen to prominent corporate leadership roles across Silicon Valley and global tech firms, ascending to the CEO role of a major gaming division remains uncommon and impactful. It highlights both the depth of South Asian American talent in technology and the expanding influence of that talent across adjacent cultural sectors like interactive entertainment.

The timing of this appointment also aligns with Xbox’s 25th anniversary, marking a symbolic turning point. Microsoft Gaming has evolved from its Xbox console roots into a multifaceted business that spans platform innovation, subscription services, cross-device play, and extensive studio operations. Sharma’s leadership is expected to inject renewed focus on strategic alignment between product, content, and community engagement at scale.

Looking ahead, Sharma’s tenure will be measured by her ability to catalyze growth with creative relevance, drive operational excellence in a rapidly changing industry landscape, and sustain the cultural resonance of gaming experiences that span generations. Her role will also encompass responding to global competitive pressures and shaping how game developers, studios, and players engage with Microsoft’s platforms in the years ahead.

Key Takeaways About Asha Sharma

• Appointed Executive Vice President and CEO of Microsoft Gaming on February 20, 2026.
• Succeeds longtime gaming leader Phil Spencer, who is retiring.
• Brings experience from Microsoft CoreAI, Instacart, and Meta.
• Oversees Xbox hardware, services, and nearly 40 studios.
• Leadership transition also includes Matt Booty as Chief Content Officer and the departure of Sarah Bond.