In a move described as the largest in the history of the gaming industry, Microsoft officially announced the retirement of Phil Spencer, CEO of Microsoft Gaming, after an impressive 38 years with the company. Spencer will officially leave his position on February 23, 2026, leaving behind a legacy that has fundamentally changed the gaming landscape. He joined Microsoft as an intern in 1988 and took over the Xbox division in 2014 at a time when the brand struggled for relevance. He is credited with launching the groundbreaking Xbox Game Pass service and orchestrating unprecedented acquisitions, including the purchase of major game development companies like Activision Blizzard and Bethesda.

In his farewell message, Spencer expressed that it is the "right time to open a new chapter" in his life but will take on a consulting role during the summer to ensure a smooth transition within the division. This timing is crucial as Microsoft aims to maintain stability and continuity in its gaming operations amidst a significant organizational change.

Additionally, Microsoft revealed Spencer's successor, Asha Sharma, who previously held a senior leadership position within the company. This restructuring marks a pivotal moment for Microsoft's gaming strategy and signals the beginning of a new era under Sharma's leadership, as the company continues to innovate and adapt in the ever-evolving gaming industry.