Microsoft has a new CEO for gaming.

• Microsoft has appointed Indian-origin executive Asha Sharma as the new CEO of Microsoft Gaming and head of Xbox, as part of a major leadership change beginning in 2026.

• She will replace longtime Xbox division leader Phil Spencer, who is retiring after serving in the position since 2014.

• Asha Sharma's appointment is being seen as a significant shift in Microsoft's strategic direction.

• The company now plans to balance artificial intelligence (AI) innovation in gaming with a renewed focus on console players.

• The move signals an effort to strengthen competition in the gaming industry and give the Xbox brand a new direction.