Microsoft’s gaming division is undergoing a significant leadership change as Phil Spencer steps down as Microsoft Gaming CEO and Xbox President Sarah Bond leaves the company.
Former Instacart and Meta executive Asha Sharma is set to replace Spencer. Sharma’s most recent position was President of Microsoft’s CoreAI product, and her appointment suggests the company plans to further integrate artificial intelligence into video games. Microsoft has previously experimented with AI technology, developing an AI gaming companion and releasing a buggy, AI-generated level of “Quake II.”
In an internal memo published by The Verge, Sharma outlined her vision for the company’s future in gaming. She stated that Microsoft “will invent new business models and new ways to play” and that “monetization and AI” will “evolve and influence this future.” Sharma emphasized the importance of balancing innovation with artistic integrity, vowing that the company “will not chase short-term efficiency or flood our ecosystem with soulless AI slop.” She stressed that “games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
Sharma listed three specific commitments in the memo, pledging to avoid AI slop, build great games beloved by players, and prioritize Xbox. These commitments underscore her focus on maintaining the quality and creativity of Microsoft’s gaming offerings while exploring new technologies and business models.




