tech
February 25, 2026
Why Xbox’s corporate shake-up matters for everyone who plays games
With its longtime figureheads stepping aside, Microsoft’s gaming division faces a pivotal moment, raising questions about whether it can still balance creative ambition with corporate strategy in the age of AI
TL;DR
- Phil Spencer (CEO of Microsoft Gaming) is retiring, and Sarah Bond (President) is resigning.
- Asha Sharma, formerly of Microsoft's CoreAI, is the new CEO, and Matt Booty is Chief Content Officer.
- Concerns exist about Sharma's AI background leading to further cost-cutting and studio closures.
- Xbox faces challenges with declining hardware sales and unfulfilled subscription service potential, despite being a top publisher by revenue.
- There's speculation that Microsoft might phase out Xbox to focus on its core AI business.
- The gaming industry is losing ground in the attention economy to social media and other interactive experiences.
- The article mentions new game releases like Super Battle Golf and discusses critical reappraisals of Firewatch, Ubisoft's restructuring, and Valve's lawsuit.
- Reader Andrew asks for recommendations for turn-based combat RPGs, with suggestions including Persona 5 Royal, Dragon Quest III HD-2D Remake, Final Fantasy VII Remake/Rebirth, Sea of Stars, Metaphor: ReFantazio, Yakuza: Like a Dragon, Like a Dragon: Infinite Wealth, and Clair Obscur: Expedition 33.
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