Sarah Bond is leaving Xbox

Bond and CEO of Microsoft Gaming Phil Spencer will be departing.

Sarah Bond, the president and COO of Xbox, is leaving the organization, along with CEO of Microsoft Gaming Phil Spencer. Her departure was announced at the same time as Spencer’s, with Asha Sharma moving into the EVP and CEO of Gaming role and Matt Booty being promoted to EVP and chief content officer. In a note to employees that she shared on LinkedIn late Friday, Bond writes that she will “remain on as a Special Advisor to Asha to help ensure a smooth transition and set the organization up for continued success.”

Microsoft is making the changes as it is undergoing some dramatic shifts to its Xbox plans, including bringing Windows and Xbox closer together to empower devices like the Xbox Ally handheld instead of relying entirely on first-party Xbox hardware. The company is also navigating increased pressures on the Xbox business, major layoffs, and hits to Xbox studios.

Bond joined Microsoft in 2017, initially serving as a CVP focused on gaming partnerships and business development. She was promoted to president of Xbox in 2023, with Spencer saying in a memo at the time that she would oversee teams including devices, player and creator experiences, strategy, and business planning.

Bond will be leaving Microsoft to start a “new chapter,” Spencer says in an internal memo. “Sarah has been instrumental during a defining period for Xbox, shaping our platform strategy, expanding Game Pass and cloud gaming, supporting new hardware launches, and guiding some of the most significant moments in our history,” Spencer says. “I’m grateful for her partnership and the impact she’s had, and I wish her the very best in what comes next.”

Sarah Bond:

Hi team,

I know there’s a lot of news to take in today.

I’m incredibly proud of what we’ve built together over the past eight-plus years. PC and cloud gaming are growing faster than ever, our next console is well underway, and together we’ve helped lay the foundation for a more open gaming platform that spans devices and reaches players around the world.

When we announced our intention to acquire Activision Blizzard in 2022, I committed to helping lead Xbox through what would be a critical period of change. Over the past four years, we’ve navigated that moment together and positioned the business for what comes next. We took on some of the biggest challenges this organization has ever faced and did it as one team.

With that, 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. I’ve had the privilege of spending time with Asha over the last few weeks as we’ve planned for this transition, and I’ve seen firsthand her deep commitment to our players, developers, and brand. She brings deep technology and commerce experience, along with a strong track record of building and scaling platforms that the world uses. Xbox deserves this. I’m excited to see her lead this next chapter for our team. I’ll remain on as a Special Advisor to Asha to help ensure a smooth transition and set the organization up for continued success.

I want to thank Phil for his mentorship and friendship over the years. He’s been a consistent champion of this business and the people who make it what it is, and I’ve learned a great deal from the way he leads through both opportunity and challenge. I’m grateful for his trust and support throughout my time on the team. I also want to thank Satya for his sponsorship and support throughout my time at Microsoft.

As I prepare to sign off, I’ve been reflecting on three simple questions I’ve tried to use to guide my days:

Did I bring my best?Did I help someone else succeed?Did I do my best work?

I hope the answer has been yes for many of you. It’s been a privilege to work alongside this team.

Always,Sarah

Update, February 20th: Added Sarah’s memo.

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Alex Chen