(UNITED STATES) — Microsoft appointed Asha Sharma as Executive Vice President and CEO of Microsoft Gaming on February 20, 2026, handing the Xbox business to a longtime product leader as Phil Spencer retires after 38 years at the company.
Sharma, an Indian-origin executive, reports directly to CEO Satya Nadella, Microsoft said in announcing the leadership change.
Spencer will retire but advise through summer 2026, as Microsoft reshapes a gaming unit that spans console hardware, subscriptions, cloud gaming and a growing portfolio of game studios.
Sharma previously served as President of Microsoft’s Core AI Product group, overseeing AI models, applications, agents, responsible AI, and developer tools. Her appointment ties Microsoft Gaming more closely to the company’s wider push to integrate artificial intelligence across consumer products and digital entertainment.
Microsoft also disclosed other senior changes around Xbox. Sarah Bond is resigning as Xbox President, and Matt Booty will move into a bigger role overseeing content.
Booty will serve as EVP and Chief Content Officer, reporting to Sharma, with oversight of nearly 40 studios across Xbox, Bethesda, Activision Blizzard and King. That studio roster includes franchises such as Halo, Call of Duty, World of Warcraft, and Candy Crush.
Sharma returned to Microsoft in 2024 after jobs outside the company. She worked as COO at Instacart, where she led its IPO and profitability with a $30 billion+ GMV P&L, and she served as VP of Product and Engineering at Meta, heading Messenger, Instagram Direct, and kids’ experiences.
Her earlier Microsoft tenure began in 2011 in marketing, and she left in 2013 before returning to the company two years ago in an AI leadership position.
Sharma holds a business degree from the University of Minnesota’s Carlson School of Management. She also serves on boards for The Home Depot and Coupang.
Microsoft framed her background as relevant to where it wants to take Xbox, with a focus on subscriptions, multi-device play, and AI-enhanced gaming. The company and its executives have pointed to her experience in scaling platforms, AI integration, cloud services, and consumer ecosystems.
In the same announcement, Microsoft tied Spencer’s departure to a long expansion of its gaming footprint across PC, mobile and cloud. Microsoft said Spencer tripled the business size and led the $69 billion Activision Blizzard acquisition (2023), as well as ZeniMax and Minecraft.
The leadership change also landed amid louder debates about how US tech companies recruit and retain global talent, particularly in AI-heavy fields. Sharma’s rise, as presented by Microsoft, highlighted education and career pathways that have long been used by international students and skilled workers.
Sharma’s trajectory has been cited by immigration watchers as an example of movement from student pathways to senior leadership through routes such as H-1B, employment-based green cards, and citizenship for high-skilled Indian professionals in tech. Microsoft has also been described as a top H-1B sponsor that relies on foreign talent for AI, cloud, gaming, and other STEM roles.
The company’s gaming division sits at the intersection of those labor needs and consumer demand for new software and services. Microsoft Gaming oversees the Xbox ecosystem, cloud gaming services, Game Pass subscriptions, and major game studios acquired over the past decade.
Microsoft’s strategy depends on scaling content and distribution while controlling costs associated with large acquisitions. The company also faces competition and integration costs tied to those deals, along with tariff pressures, as it aims to keep growing Game Pass and other multi-device offerings.
Sharma’s arrival also drew a split reaction online, with some Xbox fans voicing doubts about whether an AI-focused executive should run a games business. On X, some posts criticized her lack of gaming background, attacked the appointment as “Indian nepotism” and pointed to what they called short tenures, described as under 4 years per role.
Those reactions came as gamers and industry observers discuss broader Xbox headwinds. The public commentary cited revenue declines, 2,500+ layoffs since 2024, studio closures, and console losses, with criticism sharpened by Microsoft’s visible emphasis on AI across its products.
Sharma’s supporters have pointed to a stated intent to balance AI with human creativity, amid fears that companies will chase efficiency at the expense of craft. Her approach, as summarized in Microsoft’s announcement, sought to advance AI-enhanced gaming without “soulless AI slop” or short-term efficiency over human-crafted art.
The personnel shuffle also changes who sets the content agenda. With Booty overseeing nearly 40 studios, Microsoft concentrates game-making under a single executive while Sharma sets direction for subscriptions, devices and AI integration across the division.
For international students watching the appointment, the company and immigration observers have cast it as a reminder that STEM education remains a key employment pathway. Optional Practical Training (OPT) and STEM OPT extensions were also described as critical bridges to H-1B employment for graduates seeking longer-term roles.
Microsoft’s own staffing needs have been linked by immigration advocates to the growing demand for artificial intelligence, cloud computing, cybersecurity, and gaming technologies. Supporters of skilled-worker programs argue those areas will keep pulling global talent into US tech companies even as immigration policies shift.
The same tensions show up in policy debates. Discussions continue around H-1B reforms, Green Card backlogs, and skilled worker retention, while companies compete for specialized workers who can build AI systems, cloud infrastructure and consumer platforms.
Industry observers have also argued that large employers will keep pressing for faster processing and policies that help retain international graduates educated in American universities. Microsoft’s scale in AI and cloud computing makes the company a frequent reference point in those conversations, even as Washington debates how to adjust legal pathways for high-skilled immigration.
Sharma’s promotion also resonated among NRIs and globally mobile professionals who track cross-border careers in large tech companies. Corporate leadership roles increasingly value multicultural experience, and US technology companies continue to draw on international talent pipelines as they build products for global markets.
For Microsoft Gaming, the near-term test will be execution across an expanding portfolio: sustaining the Xbox ecosystem, growing cloud gaming, and maintaining Game Pass subscriptions while managing major studios and integrating AI into tools and experiences. The company has described those assets as central to the division’s future under Sharma.
The broader message for future applicants, as supporters of skilled immigration often frame it, is that global talent can still find leadership pathways in the United States. At the same time, the backlash and the policy fights around visas and backlogs underscore how closely corporate succession in US tech now intersects with immigration, identity, and the competition for specialized workers.
Asha Sharma Replaces Phil Spencer to Lead Microsoft Gaming
Microsoft has named Asha Sharma as the new CEO of Microsoft Gaming, replacing the retiring Phil Spencer. Sharma, an AI and product specialist, will manage the company’s massive studio portfolio and subscription services. Her leadership marks a pivot toward AI integration in digital entertainment. The transition also highlights the importance of international talent in the U.S. tech sector despite some public skepticism regarding her industry experience.
