Asha Sharma, previously a Microsoft AI executive with a background in consumer technology platforms like Meta and Instacart, was named CEO of Xbox in February 2026. This appointment surprised many, as she lacks direct experience in the gaming industry, having never shipped a video game or run a game studio. She took over from long-time Xbox chief Phil Spencer, who retired, and Sarah Bond, who was widely considered his successor but also left the company. Sharma's non-gaming background and previous role leading AI initiatives for Microsoft prompted concerns among some Xbox employees.
Sharma has quickly begun to implement changes, including removing Copilot from Xbox consoles and lowering Game Pass prices. She also announced a leadership team overhaul, bringing in executives from CoreAI, OpenAI, and Instacart to work alongside existing gaming veterans. In an internal memo, Sharma emphasized a return to Xbox's "renegade spirit" and commitment to core fans, specifically stating she would not "chase short-term efficiency or flood our ecosystem with soulless AI slop." Matt Booty, head of Xbox game studios, now reports to Sharma, providing the necessary gaming expertise.
Her appointment comes at a critical time for Xbox, which was identified by Microsoft CEO Satya Nadella as "one of our last thriving consumer brands." The brand has faced challenges, with revenue dropping nearly 10% in the December 2025 quarter, marking the fourth decline in six quarters. Additionally, Game Pass subscriptions have plateaued, and Xbox consoles are being outsold by the PlayStation 5 and Nintendo Switch 2. The $69 billion acquisition of Activision Blizzard has not yet reversed these trends. Sharma's objective is to define the next 25 years of Xbox by refocusing on gaming roots and user acquisition, a skill she demonstrated at Instacart and Meta.
