The retirement of former Microsoft Gaming CEO Phil Spencer was not a planned decision, according to a new report.
Official emails from Microsoft CEO Satya Nadella and former Microsoft Gaming CEO Phil Spencer himself framed the latter’s retirement as a thoughtful, well-planned transition, with AI executive Asha Sharma stepping in as the new CEO of Microsoft Gaming and Matt Booty elevated to Chief Content Officer. However, according to comments made by Kinda Funny’s Greg Miller during the latest episode of Games Daily podcast, the reality behind the scenes may be different.
During the discussion, Miller brought up information he had received from sources familiar with the matter, according to which Spencer’s retirement was “not planned.” While Microsoft’s public messaging stated that Spencer had discussed stepping back as early as last fall, Miller pushed back on that narrative. “This was not planned,” he said, noting that ongoing developments and last-minute movements internally painted a different picture.
Xbox is currently celebrating its 25th anniversary, a milestone that could have culminated in a celebratory sendoff if Spencer were indeed nearing retirement. Instead, the announcement happened abruptly, alongside the unexpected resignation of Xbox President Sarah Bond. As Miller and his co-hosts pointed out, if this had truly been a long-term plan, the rollout likely would have looked quite different.
It is speculated that business pressures at Microsoft, particularly following the Activision Blizzard King acquisition, and internal disagreements over the new multiplatform strategy, hardware direction, or profitability targets may have accelerated the transition. Spencer, who joined Microsoft as an intern in 1988 and became the public face of Xbox for over a decade, was viewed as a gamer-first executive. His leadership saw major acquisitions, including Activision Blizzard and Bethesda parent company ZeniMax, and a strategic shift towards Game Pass, Play Anywhere, and xCloud. With Sharma coming from Microsoft’s AI division rather than a traditional gaming background, it remains to be seen how her long-term vision for Xbox pans out.
