A Shake-Up at Xbox

Some big changes happened last week at Microsoft. Phil Spencer and Sarah Bond have departed. Who’s in? Find out below. Also, how will RAMmageddon affect consoles? Details continue to emerge. All this and the latest headlines. Let’s go!

Spencer and Bond out at Xbox

After 38 years with the company, Microsoft Executive Vice President for Gaming Phil Spencer announced his retirement last week. Spencer had been the head of Xbox for the past 12 years, and says in his departure note that he had been thinking about stepping back since last fall. During Spencer’s tenure, he oversaw the purchase of Activision Blizzard, launched the Xbox Series X/S and introduced Game Pass.

Many expected Xbox president Sarah Bond to replace Spencer when he stepped down, but in equally stunning news, Bond announced she was leaving Microsoft. In a post on LinkedIn, Bond says:

I’ve decided this is the right time for me to take my next step, both personally and professionally. We’re living through a transformative technological era that will shape the next generation of our industry, and I’m energized by what’s ahead. This moment also presents a unique opportunity for fresh eyes and new leadership to guide the team into its next chapter.

So who is taking over at Xbox? Asha Sharma was announced as the new Microsoft gaming CEO. Sharma joined Microsoft in 2024, and was the president of Microsoft's CoreAI product. Assisting Sharma will be former head of Xbox Game Studios Matt Booty. Booty was promoted to chief content officer and vice president.

In her welcome letter to the team, Sharma said her first goal for Xbox is to “understand what makes this work and protect it.” She breaks this down into three commitments:

First, great games.

Everything begins here. We must have great games beloved by players before we do anything.  Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most.

I promoted Matt Booty in honor of this commitment. He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry.

Second, the return of Xbox.

We will recommit to our core Xbox fans and players, those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world.

We will celebrate our roots with a renewed commitment to Xbox starting with console which has shaped who we are. It connects us to the players and fans who invest in Xbox, and to the developers who build ambitious experiences for it.

Gaming now lives across devices, not within the limits of any single piece of hardware. As we expand across PC, mobile, and cloud, Xbox should feel seamless, instant, and worthy of the communities we serve. We will break down barriers so developers can build once and reach players everywhere without compromise.

Third, future of play.

We are witnessing the reinvention of play.

To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love. But we will not treat those worlds as static IP to milk and monetize. We will build a shared platform and tools that empower developers and players to create and share their own stories.

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.

RAM shortage hurting gaming consoles

The RAMmageddon is hitting console developers hard, with insiders saying Sony may push back the launch of its next PlayStation console from 2027 to 2028 or even 2029. 

The report comes from Bloomberg, who talked to numerous corporations about how AI companies are buying massive amounts of memory for proposed data centers. This has caused a RAM shortage, leaving other companies to pay extremely high prices. Prices of RAM have tripled since 2025, and now AI has hard drive prices skyrocketing as well. 

This affects all consumer products that use memory, but consoles and computers are especially vulnerable. Valve recently delayed the release of their Steam Machine and Steam Frame hardware due to rising component costs. Even their four-year-old Steam Decks are only available intermittently now according to the company. 

Valve and Sony are not the only companies feeling the pinch. Nintendo could be forced to raise prices on its Switch 2 console. Nintendo president Shuntaro Furukawa stated in a recent investor call:

If this rise in component prices lasts longer than expected and runs through the next fiscal year and beyond, it may put pressure on profitability. If the situation deteriorates significantly, we will carefully assess market trends and respond.

Microsoft also has plans to release its next generation of Xbox in 2027. With the recent shakeup in management, it is unclear if that is still their plan.

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Side Quests (more stories worth reading)

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🚫 More Call of Duty news: a Black Ops 7 advertisement was banned in the United Kingdom for “trivialized sexual violence.”

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📅 Slay the Spire 2 will release in early access March 5 and have four-player co-op.

New Releases this week:

Check out our article on 10 New Games to Play in February.

2/25: Dice A Million (PC)
2/27: Resident Evil Requiem (PlayStation, Xbox, Switch and PC)
2/27: Tales of Berseria Remastered (PlayStation, Xbox, Switch and PC)

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