'We will not...flood our ecosystem with soulless AI slop,' new Xbox chief promises Xbox fans
Phil Spencer retires and new leadership steps in
· TechRadarNews By Lance Ulanoff published 21 February 2026
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- Phil Spencer steps down and retires from Microsoft
- Asha Sharma is the new EVP and CEO of Microsoft Gaming
- She'll provide the new leadership and direction of everything Xbox gaming
It's a new dawn for Xbox and its millions of devoted fans. Microsoft announced on Friday (February 20) that longtime Xbox chief Phil Spencer is retiring and Asha Sharma is stepping into the Microsoft Gaming CEO rol.
Sharma joined Microsoft two years ago after previously serving as Instacart's COO. Phil Spencer, who started as an intern, departs after 38 years with Microsoft, the last dozen of which he led Microsoft's gaming efforts.
Under his leadership, the Xbox business was transformed, marked by a focus, perhaps, less on hardware and more on the platform as a service. He expanded Game Pass and, on the platform, launched several "Day One" releases. The Xbox Network, formerly Xbox live currently has over 500 million monthly active users. Spencer oversaw the acquisitions of Activision and Minecraft, and the release of major game franchises like Halo, Forza, and Gears of War.
Spencer also owns the widely derided Game Pass price hikes, which drove monthly fees up 50%, from $19.99 a month to $29.99 a month, and his laser focus on cloud-based services has left some worried the once vaunted Xbox console is now a second-glass citizen in the Xbox gaming ecosystem.
Yes, Xbox, No, AI
Clearly aware of these and other criticisms, Asha Sharma promised in a blog post, "the return of Xbox."
"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," wrote Sharma.
That's good news for Xbox fans, but Xbox faces an uphill battle with the current console holding, according to Quantumrun, just under 31% marketshare compared to PS5.
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