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Asha Sharma, A new hope, or the final nail in the coffin?

Article by: Roy Buri

On February 20th, Asha Sharma officially replaced Phil Spencer as Microsoft's CEO of Xbox. While a new replacement may have seemed like a breath of fresh air to many console gamers. Those who knew of her history in the industry had immediate cause for concern.

It's no secret that Xbox is the "sick man" of gaming. PC gaming, largely dominated by steam, is going strong under the iconic leadership of Gabe Newell. Nintendo is doing their own thing as always, and Sony's PlayStation is enjoying a dominance in the console gaming market not seen since the PS2 era, this is largely at the expense of its major competitor, Xbox. With even Xbox itself admitting it has "lost the console wars."

This would be compounded by many recent decisions that have proven catastrophic, such as the massive spike in Game Pass subscription costs that cost Xbox "Millions" of subscribers.

With Xbox in such dire straits, the sudden replacement of CEO Phil Spencer with a CEO with a history in AI of all things was seen by many as the final bullet in the head of a dying video game company.

But is this truly the end for Xbox? Now that it's been almost seven months since Sharma took the reins, public perception has started to shift, and Sharma has certainly made quite the impact on Xbox as a company.

Sharma started her career working for SC Johnson, but quickly climbed through the corporate ranks to become the COO of online home management platform Porch.com, helping lead the company to grow from 25 to 150 employees. After some time at Facebook, she moved to become the COO at Instacart, before returning to Microsoft to become the president of Microsoft's CoreAI product, where she oversaw all AI Across Microsoft. This is where most of the concerns arise.

AI has been a growing concern in the gaming industry for several years now. While doubtlessly a useful tool in some sectors, AI has established a harsh reputation in the digital arts for being wasteful "Palagerism-ware" that produces cheap, poor-quality, derivative work, and represents corporate greed and laziness replacing human art. Given that the new CEO of Xbox has a history in AI this did not bode well for Xbox.

One point in Sharma's favor, however, is that she seems to share these concerns about AI, with her being quoted as saying "As monetization and AI evolve and influence this future, we 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."

She also has established a pattern of reversing previous unpopular decisions made by the company, such as pulling the aforementioned game pass subscription cost back down.

Another concerning moment was when Xbox announced the layoff of 3200 people in mid-2026, as well as it's dropping of several partnered studios. While certainly a concerning moment for the outlook of the company, many saw this as a welcome sign that Xbox is cutting off some of the middle management and corporate bloat that has plagued the company for years, as well as ridding itself of dead weight in studios that are no longer producing quality games.

More recently it has come out that Sharma has been answering customer support tickets herself, taking a personal interest in the interests of consumers.

So things are looking up for Xbox right? For many, It’s still too early to tell. The community in particular is still sceptical. With many on reddit in particular pointing out how convenient many of the news stories about her are, and questioning the legitimacy of the support ticket story. Unfortunately the community has been burned before, and heartwarming stories about a down to earth CEO handling the occasional support ticket and partially reversing previous bad and predatory decisions by her predecessors may sound a bit too much like corporate propaganda to convince a community that has been down this road before.

Regardless of what you think of her, it seems Asha Sharma is going to be a large part of what comes next for Xbox, and though she has made some significant steps, it will still take a lot more to win over the community at large.

https://arstechnica.com/gaming/2026/02/new-microsoft-gaming-chief-has-no-tolerance-for-bad-ai/

https://ir.homedepot.com/corporate-governance/board-of-directors

https://www.ign.com/articles/xbox-ceo-asha-sharma-may-have-personally-responded-to-your-customer-support-ticket

https://company.instacart.com/pressreleases/instacart-appoints-operations-and-product-leader-asha-sharma-as-chief-operating-officer