New Xbox CEO overhauls leadership amid sinking sales: 'We need to evolve how we work'

In a bold move to reinvigorate Microsoft's gaming division, Xbox CEO Asha Sharma has announced a significant leadership overhaul in a memo to employees. This comes on the heels of disappointing sales figures, marking the fourth consecutive decline in gaming revenue over the past six quarters. Sharma, who transitioned to the Xbox team in February following Phil Spencer's retirement, has a rich background in tech, having served in key roles at Meta and Instacart. She emphasized the need for a shift in the company's operational approach, stating, "We need to evolve how we work and how we are organized across our platform." Her memo highlighted challenges in quickly delivering impactful products and a need for greater community engagement. Recent data from VGChartz revealed that Microsoft's Xbox Series X and Series S consoles lag behind competitors, with Nintendo's Switch and Sony's PlayStation 5 leading in sales during the first quarter. In light of these challenges, Sharma previously announced reductions in Game Pass subscription prices to attract more gamers. To strengthen the Xbox team, Sharma is bringing in new leaders with essential consumer and technical expertise. Notable appointments include Jared Palmer, formerly VP of product at CoreAI and GitHub, who will focus on product development and infrastructure. Tim Allen, also from CoreAI, will lead design efforts at Xbox. Additionally, Jonathan McKay, who previously directed growth strategies at Meta and OpenAI's ChatGPT, will assume the role of Xbox's head of growth. Evan Chaki will streamline development processes, while David Schloss will manage Xbox's subscription and cloud services. The restructuring also sees Kevin Gammill stepping down from his role in user experience and Roanne Sones taking a leave of absence after summer, transitioning to an advisory position. With these strategic appointments, Sharma aims to revitalize Xbox's market presence and foster a more agile, community-focused approach in the gaming landscape.