Stock Markets February 20, 2026

Senior Xbox Executives Exit Microsoft as Gaming Unit Undergoes Strategic Shift

Sarah Bond and Phil Spencer depart while Asha Sharma and Matt Booty assume expanded leadership roles amid hardware and studio adjustments

By Nina Shah MSFT
Senior Xbox Executives Exit Microsoft as Gaming Unit Undergoes Strategic Shift
MSFT

Microsoft (NASDAQ:MSFT) announced the departures of Sarah Bond, president and chief operating officer of Xbox, and Phil Spencer, CEO of Microsoft Gaming. Asha Sharma will step into the role of executive vice president and CEO of Gaming, and Matt Booty has been elevated to executive vice president and chief content officer. The changes coincide with a strategic effort to align Windows and Xbox more closely, to support devices such as the Xbox Ally handheld, and come as the Xbox business navigates layoffs and impacts to its studios.

Key Points

  • Sarah Bond, president and chief operating officer of Xbox, and Phil Spencer, CEO of Microsoft Gaming, have left Microsoft.
  • Asha Sharma will become executive vice president and CEO of Gaming, and Matt Booty has been promoted to executive vice president and chief content officer.
  • Microsoft is shifting Xbox strategy to better integrate with Windows and to support a broader set of devices, including handheld hardware like the Xbox Ally; the Xbox business has experienced major layoffs and impacts to its studios.

Microsoft (NASDAQ:MSFT) confirmed on Friday that Sarah Bond, who served as president and chief operating officer of Xbox, is leaving the company. The announcement also noted the departure of Phil Spencer, who led Microsoft Gaming as CEO.

In the leadership shuffle that followed, Asha Sharma has been named executive vice president and CEO of Gaming. Matt Booty has been promoted to executive vice president and chief content officer, according to the company statement.

Company executives described the personnel moves as part of a broader reorientation of Xbox strategy. Microsoft is taking steps to bring Windows and Xbox closer together, shifting focus toward greater interoperability between the two platforms. That approach includes supporting a wider range of devices - for example, handheld hardware such as the Xbox Ally - rather than relying exclusively on first-party Xbox consoles.

The timing of the executive departures coincides with mounting pressures within the Xbox business. The unit has faced significant layoffs and those workforce reductions have affected Xbox studios, the company said. The leadership transitions occur against this backdrop of operational changes within the gaming division.

The changes represent a notable reorganization at the senior management level for Microsoft Gaming. Asha Sharma will lead the gaming group in her new role as executive vice president and CEO of Gaming, while Matt Booty will oversee content as executive vice president and chief content officer.

Microsoft identified the need to integrate Xbox and Windows more closely as part of its updated approach. Supporting a diversity of devices, including handhelds like the Xbox Ally, is a stated component of that strategy. The company also acknowledged that the Xbox business has been managing challenges, including substantial layoffs and impacts across its studios.

As these leadership changes take effect, Microsoft remains listed under the ticker MSFT. The company has communicated the new executive assignments and the strategic emphasis without providing additional operational details in the announcement.

Risks

  • Leadership turnover at the top of Microsoft Gaming amid a strategic realignment - this could affect organizational continuity within the gaming division.
  • Operational stress within the Xbox business evidenced by major layoffs and impacts to Xbox studios - this presents uncertainty for content development and studio operations.
  • A strategic move toward supporting varied hardware such as handheld devices may change product focus and resource allocation within the gaming and hardware segments.

More from Stock Markets

WarrenAI Ranks Five Solar Stocks Poised for Diverse Risk-Reward Profiles in 2026 Feb 20, 2026 U.S. Equities Close Higher as Consumer Services, Tech and Telecoms Lead Gains Feb 20, 2026 Electra Battery Materials Upsizes ATM to $25M; Shares Slip After Hours Feb 20, 2026 Mexican equities close higher as industrial and consumer sectors lead gains Feb 20, 2026 Toronto Market Hits Record as Materials and Tech Drive Gains Feb 20, 2026