Xbox consoles remain central to Microsoft's gaming plans, says new CEO

In a letter to staff, Asha Sharma said the company will expand across devices but keep the console at the centre of its strategy for players and developers

Microsoft’s gaming division will continue to treat the Xbox console as a core part of its business, even as it expands further across PC, mobile, and cloud. That was one of the key messages from Asha Sharma, who has taken over as CEO of Microsoft Gaming, in a letter to employees published on Microsoft’s blog.

 

In her first message in the new role, Sharma said the company would “recommit to our core Xbox fans and players” and described the console as central to the company’s identity. “We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are,” she wrote, adding that the console connects Microsoft to both players and developers building ambitious games for the platform.

 

 

At the same time, she said that Microsoft does not see gaming as limited to a single device category anymore. “As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve,” Sharma said. She added that Microsoft would work to “break down barriers so developers can build once and reach players everywhere without compromise.”

Three priorities for Microsoft Gaming

In the letter, Sharma laid out three broad priorities for the gaming business. The first, she said, is “great games”, arguing that everything else has to follow from that. She said Microsoft would continue to invest in studios and franchises, back new ideas, and take risks in new categories and markets.

The second priority is what she described as “the return of Xbox”, centred on a renewed focus on the console and the audience that has supported the platform for the past 25 years. While acknowledging that gaming now spans multiple devices, Sharma positioned the console as a foundation rather than a legacy product, saying it remains a key link between players, developers, and the Xbox ecosystem.

 

The third pillar, which she called the “future of play”, focused on how business models and technology, including AI, are changing the industry. “As monetisation and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop,” she wrote. “Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”

 

She also said Microsoft does not want to treat its franchises as “static IP to milk and monetise”, but instead build tools and platforms that let developers and players create and share their own experiences.

Leadership changes at Microsoft Gaming

Microsoft on February 20 named Indian-origin Asha Sharma Executive Vice President and CEO of Microsoft Gaming, handing her control of the Xbox business. She succeeds Phil Spencer, who retires after 38 years. Sharma has previously served as Chief Operating Officer at Instacart and a Vice President at Meta.

 

Alongside Sharma’s appointment, Microsoft also announced that Matt Booty will become Executive Vice President and Chief Content Officer, reporting to her. In a separate note to staff, Booty said his focus would be on supporting studio teams and creating the conditions for them to do their best work. He added that there are no organisational changes planned for Microsoft’s studios.