Phil Spencer Reflects on Retirement From Microsoft After 38 Years

“Thinking back to my start as an intern in 1988, I never could have imagined the path ahead," says the former Microsoft Gaming CEO.

Posted By | On 22nd, Feb. 2026

Phil Spencer

As shocking as it is sudden, Phil Spencer has announced his retirement from Microsoft. Serving as Microsoft Gaming CEO, he worked at the company for 38 years – a journey that began with an internship.

In a new tweet, Spencer said, “It’s rare in life to know when a chapter is closing, but after 38 years at Microsoft, that moment has arrived for me. I’ve made the decision to retire and begin the next chapter of my life. It’s a milestone that’s given me a chance to reflect on the incredible journey I’ve been fortunate enough to share with so many of you.”

Spencer expressed excitement at Asha Sharma, former President of CoreAI at Microsoft, taking over his role. “She’s joining an incredible group of people; teams full of talent, heart, and a deep commitment to the players they serve. Watching her lean in with curiosity and a real desire to strengthen the foundation we’ve built gives me confidence that our Xbox communities will be well supported in the years ahead.

“Thinking back to my start as an intern in 1988, I never could have imagined the path ahead. I’ve been lucky to work with so many passionate creators, partners, colleagues, and players across the industry; people who challenged me, taught me, and made this work full of joy and wonder.

“Thank you to everyone who’s been part of this chapter. This community has meant more to me than I can say. From here, I’ll keep doing what’s always mattered so much to me: cheering on the teams pushing this industry forward and playing alongside this incredible community. I’ll see you online.”

While Spencer has been at the company for decades, he rose to prominence as head of Xbox Game Studios in 2014. He would lead Xbox’s strategy, which involved regaining much of the goodwill lost after the botched reveal of the Xbox One by Interactive Entertainment Business president Don Mattrick.

He would also be known for spearheading studio acquisitions, including Obsidian Entertainment, inXile, Playground Games, Double Fine Productions, Ninja Theory, and more, eventually moving on to publishers such as Bethesda and Activision. There’s also Game Pass and the release of first-party titles on other platforms, with Avowed on PS5 being the most recent. He also pushed for backwards compatibility of OG Xbox and Xbox 360 titles, to say nothing of Xbox Cloud Gaming as we know it.

Of course, Spencer has earned his fair share of criticism, especially following studio closures, numerous layoffs, horrible game releases (like Redfall), rising prices for Game Pass, declining hardware revenue, and more. Nevertheless, it’s been an impressive legacy, and we’re keen to see where Xbox goes from here.


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