Xbox has new leadership and they’ve made one thing clear from the start. Your console isn’t going anywhere. Asha Sharma took over as CEO on February 23, 2026, with Matt Booty taking on the role of Chief Content Officer while Phil Spencer retires. In an interview with Windows Central, the pair addressed the speculation that has followed Xbox through months of declining sales and releases across multiple platforms.
Sharma knows fans have questions. The decision to release previous exclusives on PlayStation left some wondering whether Microsoft was quietly exiting the hardware business. She addressed this head-on, acknowledging the real money and countless hours players have invested in the ecosystem over the last 25 years. Her message was simple. The “return to the Xbox” that she keeps talking about starts with the box itself.
A commitment, not a publisher pivot
Matt Booty has dismissed the theory that Microsoft wants to become just another software provider on rival platforms. He emphasized that the studio system was designed specifically to work with the hardware team to influence early designs and optimize games for devices like the Xbox handheld gaming PCs.
Booty described the organization as a coalition of studios that can support both experimental passion projects and annual blockbusters. This structure serves to protect creative risk-taking. Reinforcing this point, Sharma argued that success comes from serving your core audience and not from chasing trends. First-party development isn’t going away, and smaller creative spaces still have a home here.
Drawing the line on AI and protecting creative culture
Sharma’s background as head of Microsoft’s CoreAI group raised eyebrows. Would it integrate artificial intelligence into every game? She addressed this concern head-on, drawing a hard line between helpful tools and thoughtless content. Their promise was blunt, no sloppiness, no derivation, and no sloppy automation. She wants clear boundaries about what the company won’t do.
Booty supported them, noting that there are no top-down instructions forcing AI on developers. Teams can use any technology that helps them, be it streamlining error testing or optimizing code. But the creative work, the writing, the art, the design remains with the people. Booty pointed out that new tools typically create a demand for more specialists, not fewer. The goal is to raise the quality bar, not to automate the soul of your games.
Building the next 25 years of Xbox
Sharma knows that promises are cheap. She admitted that the business has been going through difficult times and that fans have legitimate concerns. Her answer was clear: the work ahead is about evidence rather than promises. She asked for room to learn, to visit studios like Bethesda and Activision, and to understand the data behind recent moves before making dramatic changes.
But she also offered a timeline. Hardware announcements related to the return to Xbox are coming soon. She also made it personal, saying that she is fully committed and that this team has already navigated difficult transitions. The goal now is to strengthen the business not just for the next quarter, but for the next 25 years.
