Microsoft taps Asha Sharma to lead AI-driven overhaul of Xbox

Xbox leadership reset steers Microsoft toward AI-driven gaming

Microsoft replaces longtime Xbox chief Phil Spencer with Asha Sharma as the company presses an AI-tinged overhaul of its gaming business. Spencer, who spent 38 years at Microsoft and 12 years leading the Gaming division, is retiring after steering the unit through multiple console cycles and major deals including the Mojang acquisition and the company’s $75 billion purchase of Activision Blizzard. CEO Satya Nadella frames the succession as planned, thanking Spencer for his leadership while elevating an executive with a background in product and AI.

The move comes as Xbox faces commercial headwinds. Revenue from video games falls about 10% in the most recent quarter and Microsoft records an unspecified impairment in gaming, while current-generation consoles lag competitors and studio consolidation continues. Asha Sharma joins from Microsoft’s Core AI business after arriving at the company in 2024 from Instacart; her resume also includes senior product roles at Meta. Matt Booty, head of Microsoft’s gaming studios, is named to report to Sharma as executive vice president and chief content officer, and the company says Sarah Bond will depart.

Microsoft signals a strategic tilt as it seeks closer integration between platform, content and AI services. Sharma pledges to recommit to “core Xbox fans and players,” and the appointment suggests a push toward AI-enhanced player experiences, developer tools, cloud gaming improvements and new monetization models. Industry participants say early priorities will include clarifying studio roadmaps, stabilizing developer relationships after major acquisitions, and showing how AI investments translate into improved games and services rather than short-term cost cuts.

Powering data centers with continuous generation

Microsoft secures a long‑term electricity supply from Constellation Energy’s planned restart of the Three Mile Island site, renamed Crane Clean Energy Center, which is slated for 2027 and backed by a $1 billion federal loan. The agreement underscores Microsoft’s effort to lock in reliable, low‑carbon baseload power to support expanding AI and cloud operations.

Global South AI push gains momentum

At India’s AI summit, Microsoft says it is on pace to invest $50 billion in AI across the Global South by the end of the decade, with company officials joining other hyperscalers in pledging large capital commitments and backing supply‑chain initiatives aimed at semiconductor and data‑centre capacity.