Huge Xbox shakeup: Phil Spencer retiring, Sarah Bond resigns, Microsoft AI boss becomes new Microsoft Gaming CEO

February 20, 2026 - 21:57

A sweeping series of executive changes has fundamentally reshaped the leadership of Microsoft's gaming division. In a stunning announcement, longtime Xbox chief Phil Spencer is retiring, while Xbox President Sarah Bond has resigned from her position. This dual departure marks the end of a significant era for the brand.

Stepping into the role of Microsoft Gaming CEO is Mustafa Suleyman, the current head of Microsoft AI. Suleyman's appointment signals a clear strategic pivot, emphasizing the integration of advanced artificial intelligence across Xbox's hardware, services, and game development pipelines. His background in AI research and product development at DeepMind and Microsoft suggests a future where AI plays a central role in the gaming ecosystem.

Internally, Matt Booty, the head of Xbox Game Studios, is being promoted to Chief Content Officer. In this expanded role, Booty will oversee all content strategy across Xbox, PC, and mobile, including the vast portfolio of studios like Bethesda and Activision Blizzard. This consolidation aims to streamline content production and ensure a consistent pipeline of games for the Game Pass subscription service.

The industry is now watching closely to see how this new leadership trio—an AI expert, a content veteran, and a yet-to-be-named operational head—will steer the future of Xbox, its consoles, and its services in an increasingly competitive and technologically complex market.