Asha Sharma and Xbox’s new direction

With Asha Sharma’s appointment as CEO of Xbox in February 2026, a fresh wind is blowing through the organization. The changes Sharma is implementing are aimed at improving performance during a period in which Microsoft reports its fourth consecutive quarter of declining gaming revenue. These shifts promise not only a reshaping of leadership, but also an evolution in how the Xbox community and technology are approached.

Leadership changes

One of the most important steps Sharma has taken is appointing new leaders with strong backgrounds in artificial intelligence (AI) and technology development. This includes, among others:

• Jared Palmer : Former Vice President of Product at CoreAI. Palmer will join Xbox’s technical team, with a focus on product development, engineering, and infrastructure.

• Tim Allen : Allen, formerly VP of design at CoreAI, will lead Xbox’s design team. He is an experienced designer with a strong background in consumer-focused products.

• Jonathan McKay : McKay, who previously worked at Meta, is the new head of growth at Xbox. He will be responsible for improving growth and the user experience.

• Evan Chaki : Chaki leads a team focused on simplifying development processes and eliminating repetitive work.

• David Schloss : Formerly at Instacart, he will take charge of Xbox’s subscriptions and cloud operations.

In addition, several experienced Xbox veterans are being promoted or reassigned, including Jason Ronald, who is now responsible for Project Helix.

Strategic focus and changes

In an internal memo, Sharma emphasizes that Xbox must evolve in an increasingly competitive market. The focus is on simplifying processes and responding faster and more efficiently to the needs of the gaming community. Sharma says the current operating model is not working optimally, making it harder to deliver impact quickly.

To support these changes, Microsoft has set out a number of clear priorities:

• Hardware : Improving Xbox platform technology.

• Content : Investing in systems that make game development easier and create opportunities for external developers.

• Experiences : A focus on design and quality that improves the player experience.

• Services : Expanding media and subscription businesses to deliver more value to players.

Since Sharma took the helm, some marketing strategies have also changed, including the end of the “This is an Xbox” campaign, which apparently did not have the desired impact.

Xbox’s challenges

Recent reports of four straight quarters of declining revenue paint a challenging picture for Xbox. Under Sharma’s leadership, Microsoft is trying to reshape the platform’s legacy itself in an effort to regain the attention of both gamers and investors. The focus on AI and technological progress plays a central role in that effort.

In her memos, Sharma also stresses that faster innovation is crucial. “We spend too much time on internal processes instead of focusing on the community,” Sharma said. This can be seen as a call to listen more closely to the Xbox community and turn that feedback into better user experiences.

It is still too early to fully assess the impact of these changes, but the restructuring and new leadership could be well positioned to help Xbox return to growth and strengthen its place in the gaming industry. The focus on artificial intelligence and technological innovation may help restore Xbox’s reputation and improve its competitive position in the gaming market.