Xbox CEO Asha Sharma reshuffles leadership with AI experts amid console struggles

Xbox's decline as a leader in console hardware has prompted new CEO Asha Sharma to continue a sweeping leadership overhaul at the company. Sharma, who previously led Microsoft's CoreAI team, is bringing in several former colleagues to fill key Xbox leadership positions.

According to a memo obtained by CNBC on June 11, 2024, Sharma is prioritizing expertise in artificial intelligence across the division formerly known as Microsoft Gaming. The memo outlines a strategic shift to improve operational efficiency and community engagement.

Sharma stated in the memo:

"We need to evolve how we work and how we are organized across our platform. Right now, it is too hard to ship impact quickly. We spend too much time inward instead of with the community, and we lack the depth we need in some of the fundamentals."

The new Xbox leadership team includes:

• Jared Palmer as VP of Engineering (formerly CoreAI VP of Product)
• Tim Allen as design lead (formerly CoreAI VP of Design)
• Jonathan McKay as leader of Xbox growth (formerly Head of Growth for ChatGPT)
• Evan Chaki as General Manager (formerly CoreAI General Manager)

The restructuring also involves the removal of key executives:

• Roanne Sones, corporate VP of Xbox devices and ecosystem, will be "taking a leave of absence."
• Kevin Gammill, corporate VP of Xbox user experience, will be "stepping down."

Xbox's struggles in this console generation are evident in recent quarterly earnings, which show declining sales across the board. Sharma acknowledged the necessity of these changes in her memo:

"This is an important time for Xbox. Our goal with this change is simple: build a platform that is affordable, personal, and open by staying close to the work and the people we serve. We will continue to add the capabilities needed to get there."