The sudden leadership change at the helm of Microsoft Gaming and Xbox, with Phil Spencer and Sarah Bond leaving their roles, has inevitably dominated the gaming industry conversation over the past few days.
While Phil Spencer's retirement was in the air (despite Microsoft denying it just a few months ago) after a long tenure, it was believed that Sarah Bond, who had been president of Xbox since October 2023, would be the natural successor. Bond has instead left the company, and a subsequent report by The Verge revealed that she was the main driver behind the controversial 'This Is an Xbox' marketing campaign, which fans didn't take well at all.
Microsoft has instead selected Asha Sharma, previously president of CoreAI, as the new CEO of the gaming division. It was another decision that has so far proven controversial; Xbox founder Seamus Blackley, who first thought of a Microsoft console and pitched it to Bill Gates over twenty-five years ago, openly shared his opinion that Sharma will be Xbox's caretaker toward the eventual division's shutdown in favor of Microsoft's core businesses (chiefly AI-related).
His concerns are perhaps a little extreme, but certainly not entirely unfounded. In a recent Alinea Analytics newsletter, Head of Market Analysis Rhys Elliott mused that making games is more of an art than a business for a tech giant, adding that it's a "hits-driven" business with long development timelines. As such, while he believes that Sharma could perhaps do well as an executive even without being a gamer, Elliott adds that to really fly, Xbox should become its own independent entity:
Despite Sharma’s potential, the most logical long-term move is to spin Xbox off. It has Activision, Bethesda, and some of the most valuable IP in the business. A standalone Xbox would be free from the burden of matching the ROI of Azure or the ubiquity of Windows. It could return to its roots as a scrappier, game-focused competitor.
Sharma may well be the person to prepare Xbox for a transition away from Game Pass stagnation and ‘’this is an Xbox!’’, but for the brand to truly reclaim its 25-year legacy, it needs to stop being a footnote for Satya Nadella and become something of its own. It’s big enough.
The best pathway forward, in my eyes, is to set Xbox free. Not by euthanising it, but by spinning it off. Gaming is in a better place with a strong, independent Xbox.
It's hard to imagine right now, but it could perhaps happen in the future if Microsoft opts to focus on surer bets than gaming. Of course, right now, it's more of a mental exercise than anything else, but what do you think of the possibility? Vote in the poll below and voice your thoughts in the comments.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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