Phil Spencer Allegedly Forced to Retire Early as Xbox CEO, with Sarah Bond Originally Set to Succeed Him

Expert Verified By

Phil Originally Intended To Retire After The Next-Gen Console's Release!

Story Highlight
  • Insider claims Phil Spencer was forced to retire earlier than he planned to.
  • Initially, Sarah Bond was set to replace Phil as Xbox’s new CEO.
  • Both of these executives left their positions because of the gaming division’s poor performance last year. 

Yesterday, Xbox CEO Phil Spencer announced that he’ll be stepping down from his role after dedicating 38 years of his life to the gaming giant. In a new message shared publicly, Phil said he had been thinking about retiring for nearly a year now.

However, that apparently wasn’t the case, according to a new report, which suggests that Phil originally intended to retire after the release of the next-gen Xbox and is now being forced out of his role early due to last year’s underperformance for the gaming division.

Why it matters: It seems like Xbox is set to enter a new generation with a major shift from its past strategy, and as such, the older leadership being part of this change wouldn’t be a good fit.

phil spencer early retirement
Microsoft Is Shaking Up Xbox Leadership Following A Rough Last Year || X

On social media, reliable insider Ghost of Hope stated that Phil was originally supposed to step down from his CEO role after the release of the next-gen Xbox. Sarah Bond would’ve succeeded Phil as the new CEO, but unfortunately, she too has retired from her previous role as President of Xbox. 

Now, Asha Sharma has been named the new CEO for Xbox. She was previously part of Microsoft’s CoreAI Products team and has been with Microsoft for just 2 years, with no experience in gaming. Meanwhile, Matt Booty has been promoted to Executive Vice President (EVP) and Chief Content Officer and will report to Asha.

Asha Sharma Has Tons Of Experience In AI But Not In Gaming

As for why these older executives are stepping down, well, 2025 was rock bottom for Microsoft’s gaming divisions. None of their first-party games had the impact they expected, and hardware sales also fell to an all-time low. The only surviving pillar, Game Pass, also experienced a steep fall.

What are your thoughts on this story? Share your thoughts in the comment section or join the ongoing discussion at the official Tech4Gamers Forums to stay up to date with the latest news and rumors.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

PlayStation Wins Hall of Shame Award for Killing Discs And A Terrible 2026

An Australian Award Show has given PlayStation the...

Take-Two CEO Rejects GTA 6 Dependence Concerns, Says It Has 15 IPs With Over 5 Million Copies Sold

The Take-Two boss addresses a journalist's concerns about the firm allegedly having no recent major hits and relying on GTA 6 to compensate.

Wolverine Has Only Sold 2.4 Million Copies In Its First 50 Days

Sony's Q2 FY2026 financial results show that Marvel's Wolverine has only sold 2.4 million copies so far, 50 days after launch.

Legend of Zelda Ocarina of Time Review Roundup: Best Rated Game Of 2026 So Far

The Legend of Zelda: Ocarina of Time has seen a flurry of positive reviews from critics, boasting a staggering 96 score on Metacritic.

GTA 6 Pre-orders Now At 7.7 Million; Up 1.7 Million From Last Month

Two weeks before its official release, GTA 6 is said to have secured around 7.7 million pre-orders, earning it nearly $1 billion in revenue.