Microsoft Names AI Executive Asha Sharma as New Xbox CEO

Microsoft has appointed Asha Sharma, a seasoned AI and product executive, as the new Chief Executive of its gaming division, Xbox. The announcement was made by Microsoft CEO Satya Nadella in a blog post, confirming that longtime Xbox boss Phil Spencer is retiring. Xbox President Sarah Bond will also exit the company, while Matt Booty, head of game studios, transitions to the role of Chief Content Officer, reporting directly to Sharma.

Sharma most recently served as President of Core AI Product at Microsoft. She previously held senior leadership positions at Instacart and Meta and has served on the boards of The Home Depot and Coupang. She originally joined Microsoft in a marketing capacity before leaving in 2013, returning two years ago in a senior AI role.

Online Backlash and Racism Accusations

The appointment quickly drew criticism on social media platform X, with many users questioning Sharma’s lack of direct gaming industry experience. Some comments veered into overt racism, with users accusing Microsoft of “Indian nepotism” — a sentiment echoing broader political debates in the US around Indian-origin executives and the H-1B visa programme. Many others, however, were quick to defend the decision, arguing that leading a business does not require hands-on product expertise, and that much of the hostility was rooted in racial bias.

Sharma’s Vision for Xbox

In an internal email to staff, Sharma outlined her commitment to rebuilding trust with Xbox’s core audience. “We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years,” she wrote, pledging a renewed focus on console gaming. Her appointment comes at a turbulent time for Microsoft’s gaming arm, which has laid off over 2,500 employees since 2024 and shuttered several studios, even as it pushes to expand across PC and mobile platforms following its $69 billion acquisition of Activision Blizzard.