New Xbox CEO, a former Meta and Instacart exec brought in from Microsoft's AI division, says "we will not chase short-term efficiency or flood our ecosystem with soulless AI slop"

If you're worried by the prospect of a Microsoft AI executive who joined the company in 2024 taking control of Xbox as longtime chief Phil Spencer and president Sarah Bond exit the business entirely, surely you'll be comforted to hear new CEO Asha Sharma insist the company will not descend into "soulless AI slop."

In its report breaking the news, IGN shared a message from Sharma which was sent to Microsoft employees alongside word of the change in positions. Sharma was previously president of Microsoft's CoreAI and is still a board member at Home Depot, and before that, was COO of Instacart after four years as product and engineering VP at Meta.

"My first job is simple: understand what makes this work and protect it," she begins. "That starts with three commitments. First, great games. Everything begins here. We must have great games beloved by players before we do anything. Unforgettable characters, stories that make us feel, innovative game play, and creative excellence. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks. We will enter new categories and markets where we can add real value, grounded in what players care about most."

This commitment may be hard to believe given the still-sore marks left by Xbox closing the developers of Hi-Fi Rush, a bold new idea that, Xbox said, sold and reviewed well, and Redfall, a disastrous live service gamble inflicted on a studio known for bold single-player games.

"I promoted Matt Booty in honor of this commitment," Sharma says. "He understands the craft and the challenges of building great games, has led teams that deliver award-winning work, and has earned the trust of game developers across the industry."

Xbox Game Studios head Booty, who would've overseen the aforementioned studio closures, has been made Chief Content Officer of the whole Xbox ship.

Sharma continues, committing to "the return of Xbox" and doing right by "those who have invested with us for the past 25 years, and to the developers who build the expansive universes and experiences that are embraced by players across the world." This "renewed commitment" will start with the "console which has shaped who we are," as Microsoft remains bullish on its next-gen system, rumored to be a PC hybrid, despite thoroughly losing the living room to PlayStation and Nintendo and selling, by far, the most expensive console around.

Finally, the new CEO examines the "future of play." To "meet the moment" amid the "reinvention of play," she says Xbox will "invent new business models and new ways to play by leaning into what we already have: iconic teams, characters, and worlds that people love."

Here's what Xbox won't do, Sharma adds: "treat those worlds as static IP to milk and monetize." And "as monetization and AI evolve and influence this future," she adds, "we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us."

Microsoft is, of course, an ardent proponent of generative AI and AI tools in games, and has now put a surprisingly new AI executive in charge of its entire gaming branch. It's hard not to have questions about the direction of Xbox going forward, especially on the heels of multiple high-profile acquisitions flanked by closures, price hikes, and cancellations.

Spencer, at least, expresses the utmost confidence on his way out, saying Sharma "brings genuine curiosity, clarity and a deep commitment to understanding players, creators, and the decisions that shape our future. We know this is an important moment for our fans, partners, and team, and we’re committed to getting it right. I’ll remain in an advisory role through the summer to support a smooth handoff."

Xbox revenue declines across the board year-over-year with Microsoft CFO blaming a fall off in first-party game sales.