06-reference

stratechery xbox replaces head gaming

Tue Feb 24 2026 19:00:00 GMT-0500 (Eastern Standard Time) ·reference ·source: Stratechery ·by Ben Thompson
microsoftxboxgamingstrategy

Xbox Replaces Head of Gaming, Xbox History

Thompson covers Phil Spencer’s retirement from Microsoft Gaming and the appointment of Asha Sharma (AI executive, not a gamer) as new head. Thompson argues this signals Microsoft exiting the first-party console business — the original Xbox strategy of owning the living room failed under Gates, Ballmer didn’t kill it, and Nadella’s “Xbox Everywhere” subscription pivot hasn’t worked either. With Microsoft needing all resources for AI, Xbox the console won’t get more runway. The brand will survive as a publisher, possibly with third-party OEM handhelds, but Thompson is “extremely skeptical” Microsoft will make a first-party console again.

RDCO Mapping

Peripheral — illustrates Microsoft’s AI resource allocation pressure from a different angle.