Read Xbox chief Phil Spencer’s memo about leaving Microsoft

Phil Spencer, the CEO of Microsoft Gaming, has announced his retirement after nearly 40 years with the company. In an internal memo, he revealed that he made the decision to retire last fall. Spencer will continue to serve in an advisory capacity until later this year. Alongside Spencer, Xbox president Sarah Bond is also leaving Microsoft, marking a significant leadership change within the Xbox division. Asha Sharma, previously the president of product development for Microsoft’s CoreAI division, has been appointed as Spencer's successor and will take on the role of Microsoft Gaming CEO, reporting directly to Microsoft CEO Satya Nadella. The announcement of Spencer's retirement and Bond's departure was made public on February 20th, as stated in a memo from Nadella. This leadership shake-up has surprised many, particularly the decision to not promote Bond, who was seen by some as a natural successor to Spencer. Instead, Microsoft chose to promote Sharma, which has led to speculation among Xbox fans and industry observers. Despite the significant changes in leadership, Microsoft has clarified that there are no organizational changes planned for its game studios. Matt Booty, the newly promoted EVP and chief content officer, emphasized that the company has no intentions of laying off staff or shutting down studios in light of the leadership transitions. This reassurance comes amid concerns following recent industry layoffs, particularly after Sony's recent actions regarding a beloved developer.