Microsoft announced a leadership overhaul of its gaming division, with long-time executive Phil Spencer departing alongside Xbox President Sarah Bond. The company has appointed former Instacart and Metaexecutive Asha Sharma, most recently president of Microsoft’s CoreAI product, as the new head of Microsoft Gaming.
Sharma indicated the company will deepen integration of artificial intelligence into game development, player experiences, and monetization models while maintaining a focus on creative quality. Microsoft has already explored AI-driven initiatives including virtual gaming companions and experimental AI-generated content. In internal communications, Sharma emphasized that games would continue to be human-crafted works supported by advanced technology, positioning AI as an enabler rather than a replacement for developers as the company evolves its gaming ecosystem.
