Phil Spencer is retiring as CEO of Microsoft Gaming after 38 years with the company. Asha Sharma, the former President of Microsoft’s CoreAI division, will succeed Spencer.

Sarah Bond has resigned from her position as President of Xbox. Matt Booty, previously the head of Xbox Game Studios, has been promoted to Chief Content Officer to work alongside Sharma.

The leadership transition signals a strategic shift toward integrating artificial intelligence into the gaming unit. Sharma’s initial mandate includes supporting the division’s internal studios and prioritizing game development.