
On Friday, Microsoft revealed a significant shift in its gaming division, as Microsoft Gaming CEO Phil Spencer exited the company alongside Xbox President Sarah Bond.
Asha Sharma, previously with Instacart and Meta, will take over Spencer’s position. Given Sharma’s last role as the head of Microsoft’s CoreAI product, these changes indicate that Microsoft may be intensifying its focus on integrating AI into video gaming.
The corporation has already been exploring methods to merge AI with gaming, such as creating an AI gaming companion and launching a flawed, AI-generated level for “Quake II.”
In an internal communication obtained by The Verge, Sharma stated that Microsoft “will innovate new business models and new gameplay methods,” mentioning that both “monetization and AI” are set to “develop and shape this future.” Simultaneously, she noted that the company “will not pursue short-term efficiency or inundate our ecosystem with lifeless AI clutter.”
“Games are and will continue to be an art form, crafted by individuals and enabled with the most cutting-edge technology we offer,” Sharma emphasized.
This is just one of three “commitments” detailed by Sharma in her memo. The remaining commitments focus on producing “excellent games treasured by players” and giving priority to Xbox.

