The longest-serving head of Xbox is retiring ahead of the brand’s 25th anniversary. Phil Spencer joined Microsoft as an intern and rose to be the CEO of one of its most popular divisions. Maybe it’s only popular division.
Announcing his retirement the same year Halo is set to make its debut on PlayStation as part of Microsoft’s new multiplatform publishing strategy, Spencer briefly reflected on his time at the company, what comes next for Xbox, and his gratitude for those who helped it get to where it currently is. Here’s the memo he sent to staff today amid an executive shuffle that will have huge repercussions for the biggest gaming publisher in the country:
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.
Phil
XBL: P3
Spencer worked tirelessly to salvage Xbox’s reputation after a disastrous launch rollout for the Xbox One. The strategy included trying to nab big exclusives and eventually going on the biggest studio acquisition spree the industry has ever seen. The result was an Xbox Series X/S platform that had great features and, eventually, great games, but which struggled to keep pace with rival console platforms. The end of Spencer’s tenure saw the Xbox division acquire Activision Blizzard and continue to grow Game Pass into a defining service for the ecosystem and beyond it on PC.
What happens to Xbox next is anyone’s guess. Spencer’s legacy as the longest steward of the brand will take time to settle into place. Many considered him the last bulwark against Microsoft’s AI-fueled upending of the brand. Things were never going to stay the same, but they might start changing even faster than anyone dared expect.
