Microsoft announced a major gaming shake-up on Friday, with Microsoft Gaming CEO Phil Spencer departing the company, along with Xbox president Sarah Bond.
Spencer will be replaced by former Instacart and Meta executive Asha Sharma. With Sharma’s most recent role as the president of Microsoft’s CoreAI product, these moves suggest that Microsoft might be doubling down on bringing AI into video games.
The company had already been experimenting with ways to combine AI and gaming — for example, developing an AI gaming companion and releasing a buggy, AI-generated level from Quake II.
Indeed, in an internal memo published by The Verge, Sharma wrote that Microsoft “will invent new business models and new ways to play” and said that “monetization and AI” will both “evolve and influence this future.” At the same time, she said that the company “will not chase short-term efficiency or flood our ecosystem with soulless AI slop.”
“Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us,” Sharma added.
That’s just one of three “commitments” Sharma made in her memo. The others involve building “great games beloved by players” and prioritizing Xbox.
