Read Xbox chief Phil Spencer’s memo about leaving Microsoft

The Verge · Feb 20, 2026 · Collected from RSS

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Tom Warren is a senior editor and author of Notepad, who has been covering all things Microsoft, PC, and tech for over 20 years.Xbox chief Phil Spencer has just announced to employees that he’s leaving Microsoft after 38 years. In a memo entitled “A new chapter for Microsoft Gaming,” Spencer reveals to Xbox employees that he made the decision to retire from Microsoft last fall.He also reveals Xbox president Sarah Bond is leaving Microsoft, triggering a big change in management at Xbox. Asha Sharma, currently the president of CoreAI product at Microsoft, is stepping into the Microsoft Gaming CEO role, reporting directly to Microsoft CEO Satya Nadella.Here’s Phil Spencer’s full memo on his retirement:When I walked through Microsoft’s doors as an intern in June of 1988, I could never have imagined the products I’d help build, the players and customers we’d serve, or the extraordinary teams I’d be lucky enough to join. It’s been an epic ride and truly the privilege of a lifetime.Last fall, I shared with Satya that I was thinking about stepping back and starting the next chapter of my life. From that moment, we aligned on approaching this transition with intention, ensuring stability, and strengthening the foundation we’ve built. Xbox has always been more than a business. It’s a vibrant community of players, creators, and teams who care deeply about what we build and how we build it. And it deserves a thoughtful, deliberate plan for the road ahead.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.I’m also grateful for the strength of our studios organization. Matt Booty and our studios teams continue to build an incredible portfolio, and I have full confidence in the leadership and creative momentum across our global studios. I want to congratulate Matt on his promotion to EVP and Chief Content Officer.As part of this transition, Sarah Bond has decided to leave Microsoft to begin a new chapter. Sarah has been instrumental during a defining period for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in our history. I’m grateful for her partnership and the impact she’s had, and I wish her the very best in what comes next.Most of all, to everyone in Microsoft Gaming, I want to say “thank you”. I’ve learned so much from this team and community, grown alongside you, and been continually inspired by the creativity, courage, and care you bring to players, creators, and to one another every day.I’m incredibly proud of what we’ve built together over the last 25 years, and I have complete confidence in all of you and in the opportunities ahead. I’ll be cheering you on in this next chapter as Xbox’s proudest fan and player.PhilXBL: P3Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Tom Warren