Microsoft has announced a major shake-up of the Xbox gaming business, with the division’s two most recognisable and senior names departing the firm.

The CEO of Microsoft gaming Phil Spencer and the president and COO of Xbox Sarah Bond are both departing. Spencer has been at Microsoft for 38 years, 12 of which have been leading the gaming division. He’s retiring.

In a tweet he says: “It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been fortunate enough to share with so many of you.”

Sarah Bond was long thought of as his eventual replacement, but she is reportedly resigning. She is yet to comment publicly on the decision to step away from the country, but it is interesting to say the least.

The new CEO is Asha Sharma who joined Microsoft in 2024 after previously being Meta’s VP of product and engineering. She is promoting the popular Matt Booty from Xbox Game Studios head to the Chief Content Officer. And in an email to Xbox staffers Sharma certainly talks a good game. A lot of her statement will be music to the ears of Xbox gamers.

She writes (via IGN): “My first job is simple: understand what makes this work and protect it. That starts with three commitments. First, great games. Everything begins here. We must have great games beloved by players before we do anything. Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most.”

She goes on: “Second, the return of Xbox. She has a We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world. We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.”

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