Microsoft announced a major gaming shakeup on Friday, with Microsoft Gaming CEO Phil Spencer departing the company, along with Xbox President Sarah Bond. Asha Sharma, former Instacart and Meta executive, will replace Spencer as the new CEO.
Sharma's most recent role as the president of Microsoft's CoreAI product suggests that the company might be doubling down on bringing AI into video games. Microsoft had already been experimenting with ways to combine AI and gaming, including developing an AI gaming companion and releasing a buggy, AI-generated level from “Quake II.”
In an internal memo, 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.” She also vowed not to “chase short-term efficiency or flood our ecosystem with soulless AI slop.”
The New Direction
Sharma's memo outlined three “commitments” for the company, including building “great games beloved by players” and prioritizing Xbox. She emphasized that “games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
As reported by The Verge, Sharma's memo provides insight into Microsoft's future gaming strategy. With Sharma at the helm, the company is poised to explore new ways to integrate AI into gaming while maintaining a focus on artistic craftsmanship.
Market Context
Microsoft's gaming division has been experimenting with AI-powered features, including an AI gaming companion and AI-generated game levels. The company's decision to appoint Sharma as CEO suggests a continued emphasis on AI-driven innovation in the gaming space.
