Xbox SHOCK: Spencer OUT?! CoreAI Boss to Take Over?!

Xbox SHOCK: Spencer OUT?! CoreAI Boss to Take Over?!
Gaming News 20 February 2026

Big news shaking the gaming world today: Phil Spencer, the face of Xbox for so long, is reportedly stepping down from his role as CEO of Microsoft Gaming. And that's not all – Xbox President Sarah Bond is also said to be departing the company. It's a double whammy that, if true, will mark a significant shift in leadership at Microsoft's gaming division.

Xbox SHOCK: Spencer OUT?! CoreAI Boss to Take Over...

The rumor mill started churning after an email, allegedly sent to Microsoft employees, made its way online. Wario64, a well-known figure in the gaming community, posted the supposed internal communication on Bluesky. The email reportedly contained letters from Spencer, incoming CEO Asha Sharma, and Microsoft CEO Satya Nadella. Intriguingly, there was no mention of Sarah Bond in Nadella’s message, adding fuel to the speculation surrounding her exit.

According to the leaked information, Spencer apparently informed Nadella of his intentions to retire sometime in late 2025. Nadella thanked Spencer for his service, but conspicuously left out any acknowledgement of Bond's reported departure. Spencer, on the other hand, seems to have recognized Bond's contributions, calling her "instrumental" during what he described as a "defining" period for Xbox.

So, who's taking the reins? Asha Sharma, currently President of Microsoft CoreAI, is reportedly poised to succeed Spencer. Sharma's letter to employees outlines her initial priorities, focusing on "great games," "the return of Xbox," and "the future of play." She also added that Xbox intends to explore new business models and ways to engage with players, building on their existing franchises. Importantly, Sharma stressed that "monetization and Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us." It seems like a commitment to both creativity and innovation – a tricky balance to strike, but one that's crucial for the future of Xbox.

Adding another layer to the changes, Matt Booty, currently head of Xbox Game Studios, is rumored to be promoted to chief content officer. If true, this would consolidate control over the content pipeline even further. Honestly, the absence of official comment from Microsoft is deafening. The company hasn’t confirmed any of these changes, and understandably so – it's a massive restructuring, and they likely want to control the narrative. We here at Natural News have reached out to Microsoft for an official statement and will update this story as soon as we hear back. This is definitely a developing story with massive implications for the future of Xbox.

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Brandon Lewis

Gaming journalist covering video games, esports, and industry news.

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