Read Microsoft gaming CEO Asha Sharma’s first memo on the future of Xbox

The Verge · Feb 20, 2026 · Collected from RSS

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Microsoft gaming boss Phil Spencer has just announced he’s leaving the company after 12 years leading Xbox and nearly 40 at Microsoft in total. His replacement: Asha Sharma, formerly head of development for Microsoft’s AI enterprise teams. Before that, she was COO of Instacart for three years, and spent four at Meta in charge of the company’s messaging apps.What will Sharma do with Xbox? Read for yourself in her first internal memo, which we’ve printed in full below.Sharma says she is committed to “the return of Xbox,” games in “new categories and markets where we can add real value, grounded in what players care about most,” and that games will “always will be art, crafted by humans” while promising not to “flood our ecosystem with soulless AI slop.”However, she also says that “monetization and AI will evolve and influence this future,” and it sounds like Microsoft will still pursue Xbox Everywhere — she isn’t returning to the definition of Xbox as a physical box alone. While she does promise “a renewed commitment to Xbox starting with console,” she writes that Xbox will “expand across PC, mobile, and cloud” as well.Dear team,Today I begin my role as CEO of Microsoft Gaming.I feel two things at once: humility and urgency.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.I am stepping into work shaped by generations of artists, engineers, designers, writers, musicians, operators and more who create worlds that have brought joy and deep personal meaning to hundreds of millions of players. The level of craft here is exceptional, and it is amplified by Xbox, which was founded in the belief that the power of games connect people and push the industry forward.Thank you to Phil for his leadership, and to every studio, platform, and operations team that built this foundation. We are stewards of some of the most loved stories and characters in entertainment and bring players and creators together around the fun and community of gaming in entirely new ways.My first job is simple: understand what makes this work and protect it.That starts with three commitments.First, great games.Everything begins here. We must have great games beloved by players before we do anything. Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most.I promoted Matt Booty in honor of this commitment. He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry.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. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.Gaming now lives across devices, not within the limits of any single piece of hardware. As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve. We will break down barriers so developers can build once and reach players everywhere without compromise.Third, future of play.We are witnessing the reinvention of play.To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love. But we will not treat those worlds as static IP to milk and monetize. We will build a shared platform and tools that empower developers and players to create and share their own stories.As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.The next 25 years belong to the teams who dare to build something surprising, something no one else is willing to try, and have the patience to see it through. We have done this before, and I am here to help us do it again. I want to return to the renegade spirit that built Xbox in the first place. It will require us to relentlessly question everything, revisit processes, protect what works, and be brave enough to change what does not.Thank you for welcoming me into this journey.AshaAnd here’s the full memo from Matt Booty, who is now Microsoft’s chief content officer and EVP of Microsoft Gaming:I read Phil’s note with much gratitude. He has been a steady champion for game creators and our studio teams, and I’ve learned so much from his leadership over the years. All our games have benefited from his foundational support. I’m also grateful to Satya for his ongoing commitment to gaming and holding a vision of how it can connect back to the larger company.Looking forward, I’m excited to partner with Asha as our next CEO. Our first conversations centered on her commitment to making great games and the role that plays in our overall success. She asks questions, pushes for clarity, and wants our choices grounded in player and developer needs. That mindset matters as the industry around us is changing quickly: how players engage, how games are made, and how business models and platforms evolve.We have good reasons to believe in what’s ahead. This organization and its franchises have navigated change for decades, and our strength comes from teams who know how to adapt and keep delivering. That confidence is grounded in a strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building.My focus is on supporting the teams and leaders we have in place and creating the conditions for them to do their best work. To be clear, there are no organizational changes underway for our studios.Thanks for everything you do for players and for each other.-Matt