“I’m coming into gaming as a platform builder”
Asha Sharma has been appointed CEO of Microsoft Gaming, succeeding Phil Spencer who has retired after 38 years at the company.
Sharma was previously Microsoft CoreAI’s Head of Product Development.
She said she would renew focus on the Xbox console, aiming to “recommit to our core Xbox fans and players”.
The gaming division has been facing mounting pressures. Microsoft Gaming has grappled with tariff-induced cost pressures, strong competition and uncertain consumer spending.
These challenges have resulted in price rises on Xbox hardware.
In January 2026, Microsoft reported that gaming revenue fell around 9.5% in the December quarter. The company also recorded undisclosed impairment charges within the division.
In 2023, Microsoft completed its $69 billion acquisition of Activision Blizzard, the maker of Call of Duty. The deal significantly expanded Microsoft’s presence in the global video games market after prolonged regulatory scrutiny.
Despite that expansion, Microsoft’s gaming arm continues to contend with strong competition from Sony’s PlayStation, particularly in console market share and exclusive titles.
The wider console market also remains competitive, with Nintendo maintaining a significant presence.
Sharma is an alumna of the Carlson School of Management at the University of Minnesota.
According to her LinkedIn profile, she has nearly 15 years of experience across technology, product and operations leadership roles.
She began her career at Microsoft in 2011 in the marketing department.
After two years, she joined Porch Group as Chief Operating Officer, where she played a key role in building the company.
In 2017, Asha Sharma joined Meta as Vice President of Product and Engineering. She served as head of product across Messenger and Instagram Direct, and was general manager of calling, video and kids experiences.
Sharma later spent three years at Instacart as Chief Operating Officer. She helped lead the company to IPO and profitability.
In 2024, she rejoined Microsoft as President of Core AI Product. She led the product portfolio for AI models, applications, agents, responsible AI and developer tools for customers worldwide.
Previously, she served as Corporate Vice President and Head of Product for Microsoft’s AI Platform.
In an internal memo announcing her promotion, Asha Sharma outlined her top priorities for Microsoft Gaming, noting “great games”, “the return of Xbox” and the “future of play” as her three main commitments to the gaming community.
Asked what defines a great game, Sharma told Variety it is about titles with “deep emotional resonance” and “a distinct point of view”.
She said she wants to develop stories that make players “feel something,” referencing the impact of Campo Santo’s 2016 first-person mystery Firewatch on her.
Sharma acknowledged she is entering the role as an outsider to the larger gaming community and has “a lot to learn” still.
However, she said she is committed to “being grounded in what the community is telling us”.
“I’m coming into gaming as a platform builder”, Sharma said, adding that her goal is to “earn the right to be trusted by players and developers” and show the fanbase that “consistency” over time.
She described the broader “transformation” of the sector as “protecting what we believe in while remaining open-minded about the future”, referencing Matthew Ball’s recent State of Video Gaming in 2026 report.
Given her background in artificial intelligence, her appointment has prompted questions about the role of generative AI in game development. Sharma said her position is clear: she has “no tolerance for bad AI.”
Sharma added: “AI has long been part of gaming and will continue to be.”
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