On Friday, Microsoft Corp (NASDAQ:MSFT) announced a leadership change in its gaming division as longtime Xbox chief Phil Spencer retires and AI executive Asha Sharma steps in during a challenging period for the business.
Leadership Transition At Microsoft Gaming
Microsoft said Spencer will retire after 38 years at the company and remain in an advisory role through the summer to ensure a smooth transition.
“Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning,” CEO Satya Nadella said.
Sharma, previously responsible for AI models and services, has been named executive vice president and CEO of the gaming division.
She pledged to renew emphasis on the Xbox console, saying the company will “recommit to our core Xbox fans and players.”
Xbox Revenue Decline And Competitive Pressure
The leadership shake-up comes as Microsoft’s gaming revenue fell about 9% in the December quarter, with the company recording impairment charges in the division.
Rising tariffs, hardware price increases, and cautious consumer spending have added pressure.
Microsoft’s gaming arm faces intense rivalry from Sony’s PlayStation, particularly in console market share and exclusive titles.
The transition follows Microsoft’s $69 billion acquisition of Activision Blizzard, which significantly expanded its gaming footprint after regulatory scrutiny.
In additional changes, Xbox President Sarah Bond is departing, while Matt Booty will serve as executive vice president and chief content officer, reporting to Sharma.
Microsoft stock receives a strong Quality rating in Benzinga’s Edge Stock Rankings, though it is currently reflecting a negative price trend across short, medium and long-term timeframes.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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