After nearly four decades in the tech industry, Phil Spencer has announced that he is leaving Microsoft effective immediately and thereby retiring from his role as head of Xbox and Microsoft Gaming. Spencer, who started as an intern in 1988 and saw Xbox grow from its inception to a global gaming empire, has been a catalyst for change.
But it doesn't end there: Xbox head Sarah Bond, long seen as a possible successor, is also leaving the company as part of the transition. Spencer will remain as an advisor until the summer to ease the transition.
Replacing him is Asha Sharma as the new CEO of Microsoft Gaming, a name some of you readers may already be familiar with, as she comes from the company's AI division and not traditionally from the gaming industry. Sharma, who previously worked at Instacart and Meta, will now lead Xbox, Game Pass, and Xbox Game Studios.
In an initial statement, Sharma writes that she is embarking on her mission with a combination of humility and a sense of urgency, emphasising that the organisation is building on a legacy created by generations of developers, creators, and engineers.
She mentions three main commitments as her top priorities. First and foremost, the games will take centre stage, with a focus on memorable characters, strong stories, innovative gameplay, and creativity. Developers will receive more support, and classic brands will be further developed.
The second commitment is about a "comeback" for Xbox as a brand. The company wants to strengthen its relationship with long-time fans and developers and reemphasise the importance of the console, while ensuring that the gaming experience works seamlessly across PC, mobile, and cloud services.
The third focus is on the future of gaming. Management wants to create new business models and creative tools where players and developers can create their own stories. AI will be used responsibly, without replacing human creativity. The goal is to revive the bold and experimental spirit that once built Xbox.
Finally, Matt Booty, former head of Xbox Game Studios, will also be promoted to EVP and chief content officer, a role that will strengthen the future of the Xbox family. In short, it was a dramatic end to the week, to say the least.
What do you think about this shift in leadership?
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