Microsoft announced a significant leadership shake-up in its gaming division on Friday, with Microsoft Gaming CEO Phil Spencer and Xbox president Sarah Bond departing.
Spencer is set to be succeeded by Asha Sharma, a former Instacart and Meta executive. Sharma most recently served as president of Microsoft’s CoreAI product group, and her appointment is fueling expectations that Microsoft could accelerate its push to bring more AI into video games.
Microsoft has already been testing ways to blend AI with gaming. The company has explored an AI-powered gaming companion and previously released an AI-generated Quake II level that drew attention for being buggy.
In an internal memo published by The Verge, Sharma said Microsoft “will invent new business models and new ways to play,” adding that “monetisation and AI” will both “evolve and influence this future.” At the same time, she emphasised 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 statement was one of three “commitments” Sharma laid out in her message. The others included building “great games beloved by players” and keeping Xbox a priority.
