Microsoft is reshuffling the leadership of its gaming division following a period of pressure on the Xbox brand.
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Microsoft is reshuffling the leadership of its gaming division following a period of pressure on the Xbox brand. The decision has sparked debate about the direction the division will now take.
Phil Spencer is stepping down after nearly four decades at the company, including recent years as head of Microsoft Gaming. Xbox president Sarah Bond is also leaving her role, according to the BBC.
Asha Sharma will take over leadership. She comes from a position overseeing several of Microsoft’s AI initiatives and does not have a traditional career background in the gaming industry.
Strategic shift
According to the BBC, the appointment has triggered speculation among fans, with some questioning whether Microsoft will give artificial intelligence a more central role in game development.
Several industry observers note that the gaming market is increasingly competing with social media and other digital platforms for users’ attention. In that context, Sharma’s technological background may form part of a broader strategy.
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At the same time, she has sought to reassure concerns that AI will replace human creativity in game production.
A year of headwinds
The leadership change comes after a challenging year for Xbox, marked by major layoffs, declining console sales and rising development costs, according to the BBC.
Matt Booty has also been promoted to chief content officer. He has stated that there are no plans for additional organizational changes within Xbox’s game studios.
Spencer’s legacy
Phil Spencer joined Microsoft as an intern in 1988 and worked his way up through the organization. Under his leadership, Xbox completed major acquisitions including Mojang and Activision Blizzard, and strengthened its focus on the Game Pass subscription service.
With the leadership transition, Microsoft now enters a new phase in which the balance between technological innovation and traditional game development may prove decisive for Xbox’s future position.
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Sources: BBC