Original Xbox Console Designer Believes Microsoft Gaming’s New CEO Will Sunset the Division

Executive of Microsoft's CoreAI division Asha Sharma was recently announced as taking over the role of CEO of Microsoft Gaming.

Posted By | On 24th, Feb. 2026

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In light of the recent leadership shake-ups at Microsoft’s gaming division, co-founder and console designer of the original Xbox has spoken about the appointment of CoreAI executive Asha Sharma as CEO of Microsoft Gaming. In an interview with GamesBeat, Blackley revealed his belief that Sharma has been brought in to quietly and gradually sunset the entire Xbox division.

Making a note of Microsoft’s heavy investments into AI technology, Blackley said that company divisions that don’t fall in line are quietly “being sunsetted”. He compared Sharma’s appointment as CEO of Microsoft Gaming to a palliative care doctor that takes care of a terminal patient.

“Satya Nadella has made an incredible number of bets and invested an incredible amount of money and credibility in the transform model AI future,” said Blackley. “Xbox, like a lot of businesses that aren’t the core AI business, is being sunsetted. They don’t say that, but that’s what’s happening. I expect that the new CEO, Asha Sharma, her job is going to be as a palliative care doctor who slides Xbox gently into the night.”

Blackley also spoke about how it doesn’t make much sense for a leader of a division to have no experience or stakes in the operations of the divisions. Rather, Sharma’s appointment makes more sense, he says, “if you’re looking at the problem in a more abstract way.”

“I imagine asking somebody if it made sense to put a major motion picture studio into the hands of somebody who didn’t like movies, or a major record label into the hands of somebody who’d never seen a live show,” he noted. “Why would you do that? Well, you only do that if you’re looking at the problem in a more abstract way. The natural consequence of the focus on AI is that AI abstracts every problem from the minds of the executives who believe in it.”

Rather, Blackley believes that appointing someone passionate about the medium of video games as the division’s new head would have been counter-intuitive to Microsoft’s true goals. He noted that the company’s focus on AI also runs counter to the auteur-styled creation of art, which includes games.

“It would have been shocking if they had somebody in there in a meaningful role who was passionate about games, passionate about the creator-driven business of games, because it would be in direct conflict with everything else Microsoft is doing,” he said. “Microsoft is a company that is now about enabling its customers by enabling AI to drive things. That’s at odds with the auteur model of any art, but specifically of games. Microsoft doesn’t have the problem that Apple does, or that Netflix does, where they have an auteur-driven content model to manage. Games are the only place where they have a content business.”

Recent reports have indicated that the departure of former Xbox president Sarah Bond came about due to increased scrutiny over the mixed reception for the “This is an Xbox” ad campaign. However, there has been no confirmation on the matter. Bond herself has spoken about her time at the company, noting that her departure from the company was her own decision. She also thanked Spencer and praised Sharma.

Despite these shake-ups in leadership, chief content officer Matt Booty has assured Xbox fans that there are no plans to make any organizational changes.


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