Microsoft has appointed Asha Sharma as the new CEO of its gaming division, overseeing Xbox and the broader gaming business. The leadership change signals a strategic reset as the company looks to sharpen its focus on console players while navigating AI disruption and revenue pressures.
The move follows the retirement of Phil Spencer, who led Xbox since 2014 and became gaming CEO in 2022. Xbox President Sarah Bond will also depart, while Matt Booty transitions into the role of chief content officer, reporting directly to Sharma.
A Consumer-Focused AI Leader
Microsoft CEO Satya Nadella described Sharma as a leader with deep consumer instincts and AI expertise. In her previous Microsoft role, she oversaw work across AI models, agents, developer tools, and applications.
Her execution under pressure became evident during last year’s industry shake-up triggered by China’s DeepSeek AI model. According to Bloomberg, Sharma mobilized around 100 engineers to rapidly test and deploy a compatible version for Azure cloud customers within days, responding to Nadella’s call for speed.
Before rejoining Microsoft, Sharma served as chief operating officer at Instacart, guiding the company through its IPO and tightening its profitability framework. She also spent four years in product leadership at Meta Platforms and earlier worked in Microsoft’s marketing division before leaving in 2013.
“Games Are and Always Will Be Art”
In her first note to employees, Sharma framed her leadership with urgency and restraint.
She outlined three priorities: great games, the return of Xbox, and the future of play.
Addressing concerns about AI in gaming, she drew a clear line.
“As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
The statement signals a balanced approach. AI will power development and tools, but creative authorship remains central.
Indian industrialist Anand Mahindra congratulated Sharma on X, saying her perspective resonates deeply. He described gaming as a fusion of storytelling, design, music, and community rather than pure software output.
A Challenging Backdrop
Sharma takes charge at a difficult moment. Microsoft Gaming has faced tariff-driven cost pressures, rising competition, and cautious consumer spending. The company recently increased Xbox hardware prices and reported a roughly 9.5 percent decline in gaming revenue for the December quarter, alongside impairment charges within the division.
The transition reflects more than succession. It represents a philosophical shift.
AI is reshaping entertainment. Sharma’s mandate is to harness it without hollowing out creativity. The test ahead is execution.
Sharma spent four years in product leadership at Meta Platforms and earlier worked in Microsoft’s marketing team before leaving in 2013
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Source: The Indian Express
