Microsoft revealed significant leadership changes in its gaming division on Friday, as Microsoft Gaming CEO Phil Spencer and Xbox President Sarah Bond both left the company. Stepping into the role is former Instacart and Meta executive Asha Sharma, who most recently served as president of Microsoft’s CoreAI product. This shift in leadership points toward a stronger focus on integrating artificial intelligence into gaming, building on existing initiatives like an AI gaming companion and an AI-generated level for “Quake II.”

In an internal memo, Sharma outlined a vision where Microsoft will “invent new business models and new ways to play,” noting that both “monetization and AI” will “evolve and influence this future.” At the same time, she emphasized that the company “will not chase short-term efficiency or flood our ecosystem with soulless AI slop.”

Sharma reinforced that “games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.” This statement forms one of three commitments she detailed in the memo, alongside pledges to build “great games beloved by players” and to continue prioritizing the Xbox platform.