Microsoft's new gaming CEO Asha Sharma vows no AI slop as Phil Spencer retires after 40 years

Microsoft's new gaming CEO vows not to flood the ecosystem with 'endless AI slop'

Microsoft announced a major gaming shakeup on Friday, with Microsoft Gaming CEO Phil Spencer departing the company, along with Xbox President Sarah Bond. Spencer will be replaced by former Instacart and Meta executive Asha Sharma. With Sharma's most recent role as the president of Microsoft's CoreAI product, these moves suggest that Microsoft might be doubling down on bringing AI into video games. The company had already been experimenting with ways to combine AI and gaming, for example developing an AI gaming companion and releasing a buggy, AI-generated level from "Quake II." Indeed, in an internal memo published by The Verge, Sharma wrote that Microsoft "will invent new business models and new ways to play" and said that "monetization and AI" will both "evolve and influence this future." At the same time, she said that the company "will not chase short-term efficiency or flood our ecosystem with soulless AI slop." "Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us," Sharma added. That's just one of three "commitments" Sharma made in her memo. The others involve building "great games beloved by players" and prioritizing Xbox.

Microsoft's new gaming chief makes bold promises about AI in gaming

Microsoft's former AI products head, Asha Sharma, steps into Xbox leadership amid excitement and backlash. Microsoft has officially named Asha Sharma as Executive Vice President and CEO of Microsoft Gaming, marking one of the biggest leadership changes in Xbox history. The move comes as longtime gaming chief Phil Spencer retires after a decades-long career at the company, ending an era that helped shape modern Xbox. The leadership shakeup is happening during a challenging period for Microsoft's gaming division, as the gaming revenue dropped and the company faces intense competition and rising hardware costs. Interestingly, though, Sharma is not a traditional gaming executive. Before taking over Microsoft Gaming, she led product development for Microsoft's AI services and models, positioning her as one of the company's key voices in its broader artificial intelligence strategy. As a result, there's been a lot of debate over how her appointment signals how seriously Microsoft is taking the role of AI in the future of gaming. Recommended Videos To address this, in early messaging about her vision, Sharma emphasized that AI will play a growing role across the gaming ecosystem, from development tools to player experiences. At the same time, she tried to reassure fans that games would remain "crafted by humans," a phrase that has already become a talking point across the gaming community. Why AI in gaming is already sparking debate The reaction online has been swift and mixed. On social media platforms like X and Reddit, some gamers expressed concern that Microsoft might lean too heavily on AI-generated content or automation. Others questioned whether an AI-focused leader signals a shift away from traditional game development priorities. The backlash highlights a growing tension across the industry. Game studios are experimenting with AI tools for tasks such as testing, localization, asset creation, and live service updates. Supporters see these tools as a way to speed up development and reduce costs. Critics worry about creative quality, job security, and the risk of what some players call "AI slop." Taking a cautious approach, for now The good news is that Sharma appears aware of that skepticism. In her first public messages after taking the role, Sharma emphasized that Microsoft will "take risks," will not treat games as static IP to simply monetize, and will avoid flooding the ecosystem with what she called "soulless AI slop." She also stressed that games are and always will be art, reinforcing the idea that AI is meant to support creativity rather than replace it. In follow-up comments shared on social media, she laid out three commitments for Xbox: delivering great games, strengthening the Xbox brand, and shaping the future of play. She also addressed fan concerns about exclusivity and creative direction, saying she hears the community's feedback. Ultimately, Sharma's arrival signals a new chapter for Xbox, one where AI will likely play a bigger role but not without scrutiny from the players who care most about the platform. Her early promises suggest Microsoft is trying to balance innovation with creativity, even as the industry debates how far AI should go in game development. For now, the real test will be the games that follow. If Microsoft can prove that AI enhances rather than replaces the human touch, this leadership change could mark the start of a very different era for Xbox.

Xbox boss Phil Spencer is retiring, and his replacement is an AI executive who joined Microsoft in 2024

Sarah Bond, who was widely expected to take the reins one day, has instead resigned from the company. We sometimes say "it's the end of an era" to mark a notable occasion of one sort or another, and sometimes it's warranted and sometimes, not so much. In this case, though, it really is the end of an era: A Variety report says that after nearly 40 years at the company, Microsoft Gaming CEO Phil Spencer is retiring. "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," Spencer wrote in a memo sent to employees. "It's been an epic ride and truly the privilege of a lifetime." "Last fall, I shared with [Microsoft CEO Satya Nadella] 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." Spencer subsequently confirmed his retirement in a message on X. Unexpectedly, Xbox president and heir apparent Sarah Bond, who joined the Xbox division in 2017, is not part of that plan: Bond has instead resigned from Microsoft outright. Matt Booty, currently the head of Microsoft Studios, is being promoted to chief content officer. Spencer's position as Microsoft Gaming CEO will instead be taken over by Asha Sharma, who joined Microsoft in 2024 as president of its CoreAI product. Prior to that, Sharma served as chief operating officer at Instacart, and vice president of product and engineering at Meta. In a separate farewell message, Spencer said he's been working with Sharma for the past "several months," and that he has "tremendous confidence" in her ability to lead Microsoft Gaming. He also said he'll "remain in an advisory role through the summer to support a smooth handoff." Despite her background in AI, Sharma said in her own message that Xbox "will not chase short-term efficiency or flood our ecosystem with soulless AI slop." "The next 25 years belong to the teams who dare to build something surprising, something no one else is willing to try, and have the patience to see it through," Sharma wrote. "We have done this before, and I am here to help us do it again. "I want to return to the renegade spirit that built Xbox in the first place. It will require us to relentlessly question everything, revisit processes, protect what works, and be brave enough to change what does not." Spencer didn't say what he had in mind for his post-Xbox plans, except that he intends to "keep doing what's always mattered so much to me: cheering on the teams pushing this industry forward and playing alongside this incredible community."

Xbox's New Boss Promises Not To Flood It With 'Soulless AI Slop'

Xbox boss Phil Spencer is retiring after 12 years leading Microsoft's gaming division. His replacement is Asha Sharma, the president of Microsoft's CoreAI Product division. And in the new Xbox head's first memo, she promises to avoid AI slop, but makes it clear that AI will be a part of the brand's future. On February 20, Spencer confirmed in an interview with IGN that he is stepping down from his role as CEO of Microsoft Gaming after over a decade leading Xbox. While many assumed his replacement would be Sarah Bond, the president of Xbox, that wasn't the case. Bond is also leaving Xbox alongside Spencer. Instead, Sharma has been chosen to lead the Xbox division, and in her first memo to the company, obtained by The Verge, the former head of AI at Microsoft promised "the return of Xbox" and claimed she would avoid flooding Xbox with AI slop. "As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop," said Sharma. "Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us." The new Xbox boss also promised that more great games were coming. "We must have great games beloved by players before we do anything," said Sharma. "Unforgettable characters, stories that make us feel, innovative gameplay, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most."