Phil Spencer, head of Microsoft's gaming division, leaves the company

On February 20, 2026 local time, Phil Spencer, CEO of

https://blogs.microsoft.com/blog/2026/02/20/asha-sharma-named-evp-and-ceo-microsoft-gaming/

Xbox chief Phil Spencer is leaving Microsoft | The Verge
https://www.theverge.com/news/882241/microsoft-phil-spencer-xbox-leaving-retirement

Xbox, Microsoft's gaming brand, will celebrate its 25th anniversary in 2026. At the time of writing, Xbox has over 500 million monthly active users, and gamers from all platforms use Xbox.

Spencer, who has long been the face of Xbox, is leaving Microsoft, CEO Satya Nadella announced on the company's official blog.

Regarding Spencer's retirement, CEO Nadella commented, 'Since Phil Spencer decided to retire in 2025, we have been discussing succession planning. I want to thank Phil for his exceptional leadership and partnership. During his 38 years at Microsoft, 12 of which he led the games division, Phil helped transform what we do and how we do business. He expanded our reach to PC, mobile and cloud; nearly tripled the size of our business; defined our strategy through the acquisitions of Activision Blizzard , ZeniMax and Minecraft ; and strengthened our culture across our studios and platforms. I have long admired Phil's unwavering dedication to our players, creators and teams, and I personally thank him for his leadership and guidance. He will continue to work closely with Asha to ensure a smooth transition.'

Spencer announced his departure from Microsoft on Twitter and sent a message to gamers who have supported Xbox.

'It's rare to know that the next chapter in your life is about to begin, but after a 38-year career at Microsoft, that next chapter has finally arrived for me. I have decided to retire from Microsoft and begin this next chapter in my life, a milestone that also gives me the opportunity to reflect on the incredible journey I've had the honor of sharing with so many of you.'

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…

— Phil Spencer (@XboxP3) February 20, 2026

'I am excited that Asha Sharma will be taking on the role of CEO (of Microsoft Gaming), as she joins an incredible group of people - a team filled with talent, passion and dedication. Her leaning forward with curiosity and a genuine desire to build on the foundation we've built gives me confidence that the Xbox community will be well-served for years to come.'

I'm excited for @asha_shar as she steps into the CEO role. She's joining an incredible group of people; teams full of talent, heart, and a deep commitment to the players they serve. Watching her lean in with curiosity and a real desire to strengthen the foundation we've built…

— Phil Spencer (@XboxP3) February 20, 2026

'Looking back on my career at Microsoft, which began as an intern in 1988, I never could have imagined the path my future would take. I've been fortunate to work in this industry with so many passionate creators, partners, colleagues, and players who have challenged me, taught me, and made this job full of joy and surprises.'

Thinking back to my start as an intern in 1988, I never could have imagined the path ahead. I've been lucky to work with so many passionate creators, partners, colleagues, and players across the industry; people who challenged me, taught me, and made this work full of joy and…

— Phil Spencer (@XboxP3) February 20, 2026

'Thank you to everyone who was a part of this chapter. This community has meant more to me than I can express.'

Thank you to everyone who's been part of this chapter. This community has meant more to me than I can say.

— Phil Spencer (@XboxP3) February 20, 2026

'From here on out, I'll continue doing what's always been important to me: supporting the teams that drive this industry forward and playing with this incredible community. See you online.'

From here, I'll keep doing what's always mattered so much to me: cheering on the teams pushing this industry forward and playing alongside this incredible community. I'll see you online. pic.twitter.com/W8EjIi01ML

— Phil Spencer (@XboxP3) February 20, 2026

Following Spencer's departure, Sarah Bond, who served as president of Xbox, has also announced that she will be leaving the company.

In addition, CEO Nadella stated, 'Looking ahead, I am very pleased to announce that Asha Sharma will become Executive Vice President and CEO of Microsoft Gaming, reporting directly to me,' announcing that Sharma will succeed Spencer.

Sharma, who previously served as Chief Operating Officer at Instacart and Vice President at Meta, said, 'She brings extensive experience building and growing platforms, aligning business models for long-term value, and operating at a global scale, which will be critical as we lead our gaming business into its next phase of growth.'

The company also announced that Matt Booty will be executive vice president and chief content officer, reporting directly to Sharma. Under Booty, Microsoft Gaming will manage nearly 40 game studios, including Xbox, Bethesda, Activision Blizzard, and King.