Microsoft has announced a major leadership transition in its gaming division, with longtime executive Phil Spencer stepping down as CEO of Microsoft Gaming.

He is being succeeded by Asha Sharma, a former Meta and Instacart executive.

The reshuffle also includes the departure of Xbox President Sarah Bond and signals a renewed focus on integrating artificial intelligence into gaming experiences.

Sharma previously led Microsoft’s CoreAI product group, placing her at the center of the company’s AI strategy.

In an internal memo, Sharma emphasized that while AI will play a role in shaping the future of gaming, Microsoft will avoid saturating its ecosystem with low-quality, automated content.

She stressed that games remain a creative art form built by human developers.

Microsoft has already experimented with AI-generated content, including an AI-powered gaming companion and experimental levels in legacy titles.

However, Sharma said the company’s priority remains building meaningful, player-loved experiences.

She outlined three core commitments: fostering creative excellence, responsibly evolving monetization and AI, and strengthening the Xbox platform as a long-term gaming ecosystem.

Source: Techcrunch