There’s big news in the gaming world. Phil Spencer, a well-known figure at Xbox, is stepping down as CEO. In his place, Asha Sharma, formerly head of product development at Microsoft CoreAI, has taken the reins.
Sharma has huge expectations ahead. She expressed her respect for Spencer in an interview with Variety, acknowledging the legacy he leaves behind. But she’s also eager to carve her own path. In an internal memo, she listed her top priorities as creating “great games,” reviving Xbox’s identity, and shaping the “future of play.”
So, what does Sharma believe makes a great game? Her experience at companies like Instacart and Meta shapes her view. She aims for games with “deep emotional resonance” and storytelling that truly moves players, much like the impactful experience found in Campo Santo’s 2016 title “Firewatch.”
Entering this role, Sharma admits she has a lot to learn about the gaming community. She wants to be grounded in their feedback and is determined to build trust among players and developers with consistent engagement.
Sharma also pointed to the challenges facing the gaming industry. Referring to Matthew Ball’s “State of Video Gaming in 2026” report, she noted the need for balance: preserving core values while being open to new ideas. This approach shows her desire to navigate the industry’s evolving landscape.
Given her background in AI, there’s been speculation about how it will factor into game development under her leadership. Sharma has made her position clear: she has “no tolerance for bad AI.” She believes that while AI has always been a part of gaming, the heart of great stories comes from human creativity.
As Microsoft Gaming approaches its 25th anniversary this fall, Sharma looks forward to celebrating the company’s past while paving the way for its future. Highlights are expected from the GDC Festival of Gaming in March and more news at Xbox’s upcoming Games Showcase this spring. It’s an exciting time, and all eyes are on Sharma as she leads this new chapter for Xbox.
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Asha Sharma,Microsoft Gaming,Phil Spencer,Xbox
