Nothing About The Big Xbox Shakeup Makes Sense

The retirement of Phil Spencer was announced on a Friday afternoon through memos and media exclusives, catching many off guard. The announcement had been scheduled for Monday, February 23, but reporting from IGN moved up the timeline and many employees learned the news via social media.

Spencer has reportedly been planning to retire for almost a year, though Microsoft communications head Frank Shaw denied retirement rumors last July. There was no podcast or other public send-off for one of gaming’s most visible executives. Spencer will remain in an advisory role through the summer while Asha Sharma becomes Microsoft Gaming CEO.

His public-facing role had felt ceremonial, making it notable that he’s stepping back before Xbox’s 25th anniversary and what some saw as a 2026 “victory lap.” Game Pass’s price hike has been unpopular even as Xbox has seen strong releases; console sales are struggling while interest grows around PC-focused devices like the Xbox Ally X.

phil spencer, asha sharma, microsoft gaming, xbox, game pass, price hike, ign, frank shaw, xbox ally, console sales