The gaming industry has witnessed one of the most significant personnel shifts in Microsoft's history. In February 2026, legendary Xbox head Phil Spencer and division president Sarah Bond stepped down from their roles. Their departure marked the end of an era, but more importantly, signaled the onset of a deep crisis within the division. Console sales are plummeting, revenue is shrinking, and in 2025, the company was forced to lay off thousands of employees and close several studios.
They have been replaced by new faces. Leadership has passed to Asha Sharma, who previously oversaw product development in the CoreAI division, and Matt Booty, who received a promotion. Sharma's arrival, a specialist with a background in artificial intelligence, hints in itself at a shift in the brand's development vector.
100 Days to Save the Business
The new leader did not hide the problematic nature of the current situation. In her first public statements, Asha Sharma admitted that Xbox is in an "unhealthy position." That is why the next 100 days will be dedicated to a complete business reboot.
The term "reboot" sounds weighty, yet there are few specific details of the strategy so far. Sharma outlined the general direction of changes: it is necessary to radically review investment policy, shift priorities, and change the working model itself. The goal is ambitious — to return the division to growth and take a place "where the whole world plays".
This phrase alludes to the Play Anywhere concept, allowing users to launch games and synchronize progress on Xbox consoles, PCs, and portable devices without extra charges. It remains unclear how much more radical the promised relaunch will be compared to existing ideas, but the intention to change the rules of the game is obvious.
The Shadow of the Activision Deal
It is impossible to discuss the future of Xbox without ignoring the giant deal to buy Activision for $69 billion. Journalists directly asked Sharma whether she considers this deal successful in retrospect. The new head's answer was diplomatic and evasive.
Sharma reminded that the decision to purchase was made under completely different conditions: before the ChatGPT era, when Microsoft's strategy revolved around "hardware" sales, and the world had not yet emerged from the COVID-19 pandemic. Despite the difficulty of evaluating past decisions, she emphasized that the acquired assets remain incredible, and the company intends to continue investing in them.
AI as the New Strategy?
The key factor determining the future of Xbox is the new leader's background. Asha Sharma came to the gaming division from the team working on Microsoft's artificial intelligence products. This is not just a coincidence but a hint that AI will become the foundation of the updated strategy.
For the first time in 51 years of existence, Microsoft launched a voluntary departure program for employees, which became an alarming signal for the entire industry. Now the question at stake is: will Asha Sharma be able to implement her strategy before the promised 100 days expire, and will she be able to return Xbox to the ranks of market leaders amidst fierce competition?