Can Indian-origin CEO Asha Sharma save Microsoft Gaming amid 'rapid change' in industry?

Indian-origin executive Asha Sharma is the name at the forefront of Microsoft Gaming's latest leadership rejig, taking over the CEO post from longtime leader Phil Spencer, who has worked at Xbox since its inception in 2001.

She will be joined by Xbox Game Studios head Matt Booty, who is being promoted to Chief Content Officer (CCO), amid the departure of Sarah Bond, who was previously touted as Spencer's successor.

In her first note to Microsoft's employees, Sharma made a surprisingly bold statement on AI and its growing role in the industry, stating that Microsoft's gaming division "will not chase short-term efficiency or ... soulless AI slop".

"Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us,” she said.

Her note also added a tone of urgency, declaring that the industry was "in a period of rapid change", and outlined key priorities, including a focus on “great games”, “the return of Xbox”, and “the future of play", a Financial Express report said.

Sharma's reference to "soulless AI slop" has particularly captured the internet's attention, as she herself comes from the world of AI and consumer products, and has previously been at the helm of product development for Microsoft’s CoreAI division.

Microsoft CEO Satya Nadella himself highlighted that her consumer expertise was the reason behind her selection, and that Matt Booty would be reporting to her. In that regard, the latter is expected to provide the required depth for the gaming division's content pipeline, while Sharma will handle the mammoth task of bringing gamers back into the fold in terms of revenue.

Notably, Booty's time at Microsoft Gaming has seen the division grow to nearly 40 studios across Xbox, Bethesda, Activision Blizzard, and King—responsible for renowned franchises such as Halo, Call of Duty, World of Warcraft, Diablo, Candy Crush, and Fallout.

This comes amid financial issues for Microsoft, such as tariff-related pressures, intense competition, and changing consumer spending, which have translated into a roughly 9.5 per cent decline in gaming revenue for the December quarter.

"I’m excited for how we will capture the opportunity ahead and define what comes next, while staying grounded in what players and creators value," Sharma added in her note.