Xbox Shakeup: Phil Spencer Retires, Asha Sharma Takes Over – Will Exclusives Return?

It has been quite a week in the gaming landscape. PlayStation has shut the doors of one of the most talented remake studios in our industry - Bluepoint Games. However, the week ended with Xbox asking PlayStation to hold their beer.

For those unaware, Xbox announced the retirement of 38-year veteran and Microsoft Gaming CEO and head of Xbox, Phil Spencer. Spencer will step down on Monday, with Asha Sharma, previously head of CoreAI at Microsoft, taking his place. This will be followed by the now-former president of Xbox, Sarah Bond - who would have been next in line to become CEO and head of Xbox - leaving without any formal announcement (she has since posted a statement). Among these changes, Matt Booty was promoted to Chief Content Officer and will work closely with Sharma.

It is certainly a lot to take in. Xbox is about to undergo its biggest shake-up yet, looking to build upon the legacy of those who came before and shape the future of the brand. But what does that look like moving forward?

For fans, the news has been mixed. The uproar of voices has been seen across social media, comment sections, and more. Some approve the shift, while others are disappointed in this change. Though it’s easy to criticize from behind a keyboard or phone, Xbox’s new management has not been well received and faces an uphill battle that feels more like a mountain.

Phil and his team were able to steer the ship in a new direction, though many are asking if this was the right decision at all. Xbox is now seen by fans as a third-party company, bringing games to every platform - a pivot from the days of the Xbox One reveal: TV, TV, TV, Call of Duty, Call of Duty, Call of Duty. Was this the breaking point? A vision that did not last long and was quickly dropped for another direction. A direction that brought Xbox first-party titles to their competition - PlayStation. At the time, many never thought they’d see the day. However, the move came after losing the console race, and once again, Xbox made another pivot.

WHAT DOES THE FUTURE HOLD FOR XBOX?

Phil sat down with Satya last fall to discuss his time and the process to step back from his role within Xbox and begin a new chapter.

“Today marks an exciting new chapter for Microsoft Gaming as Asha Sharma steps into the role of CEO, and I want to be the first to welcome her to this incredible team. Working with her over the past several months has given me tremendous confidence. She brings genuine curiosity, clarity, and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff,” reads Phil’s statement.

Asha had a message for fans, friends, and family to reveal her vision for the future of the brand:

“Today I begin my role as CEO of Microsoft Gaming. I feel two things at once: humility and urgency.”

Sharma continues: “Humility because this team has built something extraordinary over decades. Urgency because gaming is in a period of rapid change, and we need to move with clarity and conviction. My first job is simple: understand what makes this work and protect it.”

This was followed by something that stood out to me in her second note:

“Second, the return of Xbox. We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world. We will celebrate our roots with a renewed commitment to Xbox, starting with console, which has shaped who we are.”

Interesting statement, isn’t it – “celebrate our roots with a renewed commitment to Xbox, starting with console”. What does this exactly mean?

XBOX EXCLUSIVES COMING BACK?

One thing Xbox has lost is the console race. PlayStation has dominated this market, along with Nintendo, for years. We’ve seen Xbox pivot away from exclusives and bring their first-party library to other platforms - PlayStation and Nintendo - though neither company seems to return the favor, except PlayStation with a title or two here and there. Xbox has shifted to the cloud gaming market, and if the rumors hold true, a hybrid next-gen console will pair console and PC together, incorporating other ecosystems on the platform - Steam and Epic Games Store.

At the moment, there is very little reason to purchase an Xbox console. If there is any hope of placing Xbox at the top, there needs to be change. Give players a reason to buy the Xbox console; how do you do this…exclusive! There is a reason PlayStation continues to create exclusives. Nintendo is in the same position, but Xbox thought it was time to leave exclusives behind. Exclusives create competition and value for the brand, creating a reason for players to purchase the console. However, great games are needed to garner value, something Xbox has failed at time and time again. They’ve created good games, but not great games that warrant a purchase of an Xbox. Starfield fell short, Halo has fallen flat, completely unable to hold fans close to the brand. It’s time for a change.

This was the vision as of late, with Phil and Sarah leading the charge, to pivot away from exclusives. Searching for a broader reach, and to their credit, PlayStation and Nintendo fans have prospered with the likes of Forza Horizon, Hi-Fi Rush, among others. Has this now changed with the removal of those two massive figures within Xbox and Asha filling the role? Will exclusives see a return? Can Asha turn the tides back in Xbox’s favor? Asha has no past experience in video games, though she worked on CoreAI at Microsoft, a development tool suite. So why place her as the next in line to follow in Phil’s footsteps?

ASHA HAS NO PAST EXPERIENCE IN VIDEO GAMES

Xbox is about to hit an incredible milestone with its 25th anniversary coming up later this year. Why would Phil and Sarah leave now, with the plans they have created to build hype and beyond, all leading to the 25th anniversary of Xbox? This doesn’t add up!

Instead, we’re left with a Friday afternoon announcement that Phil Spencer is retiring, and Sarah Bond is resigning. This was not planned a year in advance. This feels more like a disagreement leading to the departure of two visionaries within the Xbox organization and a scramble to fill the void. Sarah had nothing to share until many hours later:

“I’m incredibly proud of what we’ve built together over the past eight-plus years. PC and cloud gaming are growing faster than ever, our next console is well underway, and together we’ve helped lay the foundation for a more open gaming platform that spans devices and reaches players around the world,” she began to share on her LinkedIn.

There are many fans wondering where Xbox goes from here, myself included. What direction will they take now? Have the plans changed for the rumored 2027 next-gen console? Asha is a business-focused leader, not a gamer like Phil. Fans aligned with Phil because we knew, at heart, Phil played the games too.

Asha now faces the largest challenge of her career. Can she turn the Xbox brand around and fix what hasn’t been working for years now? How many times will Xbox pivot before shutting it down? She will have to make some of the most challenging decisions within the company to bring Xbox back to the top of their game. Create standout titles that make a difference. Xbox has more studios than any other company in the industry but still has yet to make a game of the year contender. How is that possible? Things clearly aren’t working, and Asha, along with Matt, have to make a change that will create heavy-hitting game of the year titles. Otherwise, Xbox might as well close the doors.

Asha’s vision moving forward will certainly take time, if not years. Game Pass price increases won’t be enough to save the company. The Game Pass goal has fallen short of 100 million users, studios have closed, games have been cancelled, and the purchase of Activision Blizzard hasn’t proven its worth - only adding more pressure and expenses.

At this point, management certainly needs a change and, once again, another pivot in direction. My first reaction to the news of Phil and Sarah hurt; I’ve followed these two figures for years covering this industry. However, after looking back, taking a bit of time to gather my thoughts and some research, I’ve come to the conclusion: Xbox needs a change, starting at the top. I’ve had the pleasure to meet and speak with both Phil and Sarah; they are true believers in their vision and had a plan to hopefully rise Xbox to the top. Not every decision made worked out for Phil and Sarah, though they did have many successes. Not every choice Asha is about to make will work either. But the Xbox One and Xbox Series generations have continued to struggle for far too many years, and this has now led to Asha facing a challenge I wouldn’t envy in her position. It will be an uphill battle that certainly can be fixed, though many feel it’s an impossible task. Time will tell.

What do you think of Phil and Sarah leaving Xbox, along with Asha taking the reins? Let us know in the comments.