New Microsoft Gaming CEO Has No Tolerance For ‘Bad AI’

New Microsoft Gaming CEO Asha Sharma gives her stance on AI. She also firmly believes that human beings are the ones responsible for great stories in gaming.

On February 20, 2026, Xbox underwent a great restructuring that led to Phil Spencer’s retirement. Sarah Bond, former Xbox president, also stepped down. In their place, Asha Sharma has been named new EVP and CEO of Microsoft Gaming.

Asha Sharma’s Vision for Xbox and the Future of Microsoft Gaming

In an interview with Variety, Sharma, who was previously the head of CoreAI at Microsoft, commented on her stance on AI in gaming. She admits the industry is in a tumultuous place but remains optimistic and open-minded about the future.

Speaking of the future, while she does have a background in AI, she also has no tolerance for “bad AI.” Furthermore, she also believes in protecting what she believes in. As that pertains to AI, she is cognisant that AI is part of gaming’s future, as it has played a role in its past. Still, she believes humans tell good stories.

“AI has long been part of gaming and will continue to be,” Sharma said, noting that gaming needs new “growth engines,” but that “great stories are created by humans.”

Learn more about Phil Spencer’s retirement and Xbox’s restructuring at this link. Check out Asha Sharma’s full memo to her team following the shakeups here.

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