Xbox saw another couple of regular team members leave the company. The departures come in the wake of numerous leadership changes that have hit Xbox in recent months, abruptly changing the landscape and future outlook of Microsoft's gaming division.
Microsoft's Xbox brand is seeing the end of an era as the company experiences a slew of personnel changes. Phil Spencer, who joined Microsoft in 1988 and served as Xbox CEO for 12 years, announced his sudden departure from the company in February 2026. The move signaled a massive shift in the brand identity that Spencer had helped define since the launch of the original Xbox console. Spencer was quickly followed by Sarah Bond, president of Xbox, who was expected to replace Spencer upon his departure. Instead, the role was taken over by former Meta VP Asha Sharma, who pledged to return Xbox to its former glory.
Microsoft issues statement on possible layoffs after major changes in Xbox leadership
A key Microsoft executive shares an official comment on the possibility of layoffs following major changes in Xbox leadership.
Xbox Leadership will see two more senior departures
There have been other leadership changes at Xbox as the company has seen two more senior employees leave the company. Lori Wright, who served as the company's corporate vice president, and Haiyan Zhang, who held the role of general manager of game artificial intelligence, have both announced their departures from the Xbox team, with changes expected in the coming weeks. Wright, who announced her departure via her LinkedIn page, described her time at Microsoft as the “adventure of a lifetime.” Wright has been with Microsoft since 2017 and began her role as VP of Xbox Business Development in October 2019. Zhang also took to her personal LinkedIn to reveal her departure, describing her departure as “the company's most difficult decision [her] life.” Zhang started at Microsoft in 2013 and entered her latest role in 2022 as head of gaming artificial intelligence.
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The two recent departures come as CEO Asha Sharma promises sweeping changes to the Xbox brand, with the newly appointed Xbox leader acknowledging fans' desire for exclusive games. Sharma also tried to calm concerns about the infusion of AI into Xbox's future, given her own professional background with the divisive technology. Sharma used social media to stay in direct communication with fans, even broadcasting her own Xbox gamertag to allow fans to check out her gaming history.
The sweeping changes in leadership over the past few months will undoubtedly lead to a new overall approach for Xbox as Microsoft moves towards the next era of the brand. With new information about the next Xbox console revealed at the 2026 GDC Festival of Gaming, the company is firmly focused on the future. The release of the console, currently labeled as Project Helix, may still be some time away, but Microsoft's open acknowledgment of its existence should surely reassure fans and shareholders alike that they remain confident in the longevity of the Xbox brand.
As Microsoft continues to shift thoughts and conversations toward the future of Xbox, some have less optimistic thoughts about where the company's gaming division is headed. Even the former co-founders of Xbox have expressed doubts about the future of the company, although all thoughts on the matter remain speculative. As Xbox's seemingly ongoing sudden exits continue, the last two outings are sure to fuel similar talk of Microsoft quietly draining resources from its gaming division, but the imminent launch of a brand new console may allay such concerns. Only time will tell what the implications of the latest Xbox changes will be.
Source: Eurogamer
