Microsoft Taps Asha Sharma as Xbox CEO After 9% Gaming Revenue Drop
Microsoft gaming chief Phil Spencer will retire after 38 years, with AI executive Asha Sharma named gaming division CEO as Xbox revenue dropped about 9% in the December quarter. Additionally, MSFT is highlighted as an undervalued AI infrastructure play in a $5,000 portfolio recommendation alongside Nvidia, Broadcom and Alphabet.
1. Leadership Change in Xbox
Phil Spencer, who led Microsoft’s gaming unit for 38 years, will retire and transition to an advisory role through summer. AI executive Asha Sharma has been named executive vice president and CEO of the Xbox division, pledging to refocus on core console fans and renew development priorities.
2. Xbox Financial Pressure
Gaming revenue fell roughly 9% in the December quarter amid higher tariffs, increased hardware pricing and cautious consumer spending. The division also recorded impairment charges following the $69 billion Activision Blizzard acquisition, while facing intensified competition from Sony’s PlayStation.
3. MSFT in AI Portfolio Picks
In a $5,000 AI stock portfolio recommendation, Microsoft is cited as an undervalued infrastructure play alongside Nvidia, Taiwan Semiconductor, Broadcom and Alphabet. The inclusion reflects confidence in MSFT’s cloud and AI services as hyperscale capital expenditures approach $650 billion.