A leadership change at Microsoft’s gaming division triggered online criticism, with some gamers alleging “Indian nepotism” after the company appointed AI executive Asha Sharma to lead Xbox. 

Microsoft confirmed that Sharma will succeed long-time Xbox chief Phil Spencer, who is retiring. Xbox President Sarah Bond will also step down, while head of game studios Matt Booty will move into the role of chief content officer and report to Sharma. 

Sharma was the President of Core AI Product at Microsoft for the past two years. Before that, she had worked as Chief Operating Officer at Instacart and as a Vice President at Meta. 

The changes were announced by Microsoft CEO Satya Nadella in a blog post on Friday. “I am long on gaming and its role at the centre of our consumer ambition, and as we look ahead, I’m excited to share that Asha Sharma will become Executive Vice President and CEO, Microsoft Gaming, reporting to me, said Nadella.

But netizens were not happy with the announcement, with users pointing out that Sharma’s appointment was due to her being an Indian. A user on X (formerly Twitter) said, “Asha Sharma has less education and experience in gaming than the black woman (@BondSarah_Bond) who was the obvious replacement for Spencer. So, yeah, keep up with the Indian make-believe about Indian supremacy. Indians are overdue for a massive backlash.  That day is coming.”

“She’s literally never been an individual contributor. Wild, Indian nepotism is wild,” added another.

@Pirat_Nation, an X user, said, “Asha Sharma, the new head of Xbox, is an AI executive with no background in gaming.” Another user, Lawrence Johnson, who goes by @Lawrenc23954038, said, “If you actually did play any video games, then tell us upfront what the names of games you have played. Because even the AI cannot replace video games in general. And this is to prove that you are indeed worthy of being an Xbox CEO.”

Despite the backlash, some came to defend Sharma, saying that the negativity is “pure xenophobia”. Shikhar Sagar posted, “Meet Asha Sharma, an Indian: suddenly the global gaming community forgot what global means; Funny how hiring the best person turns into panic the moment the surname isn't familiar; The resume is world-class, the meltdown is pure xenophobia in 4K; They were fine with Indian talent fixing their tech, leading it to hit differently. Reminder: Satya Nadella has been running Microsoft for years, and the sky didn't fall.” 

Sharma’s priorities in her new role

Sharma, in a company blog post said, “Today I begin my role as CEO of Microsoft Gaming. I feel two things at once: humility and urgency,” noting that gaming is in a period of rapid change and the company must move “with clarity and conviction.” Calling the company “stewards of some of the most loved stories and characters in entertainment,” she added, “My first job is simple: understand what makes this work and protect it.”

Outlining her priorities, Sharma said, “First, great games. We will empower our studios, invest in iconic franchises, and back bold new ideas. We will take risks.”

On strategy, she declared, “Second, the return of Xbox,” adding, “We will recommit to our core Xbox fans and players.” While reaffirming console roots, she acknowledged that “Gaming now lives across devices, not within the limits of any single piece of hardware.”

Looking ahead, she said, “Third, future of play. We are witnessing the reinvention of play,” while making clear, “We will not treat those worlds as static IP to milk and monetise,” and “will not chase short-term efficiency or flood our ecosystem with soulless AI slop.” She said, “Games are and always will be art, crafted by humans,” and called for a return to “the renegade spirit that built Xbox in the first place.

Meanwhile, industry leaders congratulated Sharma on her new role.  Anand Mahindra, Chairperson, Mahindra and Mahindra, took to X to say that Sharma’s view of gaming as art “resonates deeply.”  Mahindra wrote, “Your view of gaming as art resonates deeply. Games aren’t just entertainment; they’re storytelling, design, music, and community. The canvas just happens to be interactive.” He also extended his warm wishes to Sharma, stating, “Congratulations, Asha. May fortune favour your journey…”