Former Xbox President Sarah Bond Exits Amid Internal Strategy Failures
Former Xbox president Sarah Bond appears to have taken the fall for a multiplatform strategy that was failing internally, according to a detailed report from The Verge. This sheds new light on why she exited Microsoft last week alongside longtime gaming chief Phil Spencer, in a move that has sent shockwaves through the gaming industry.
Bond Overlooked for Top Role as Microsoft Appoints New Gaming CEO
Sarah Bond, who was widely seen as Phil Spencer's natural successor, did not get the top job at Microsoft Gaming. Instead, Microsoft handed the CEO role to Asha Sharma, a former CoreAI executive with no background in gaming. Unlike Spencer, who received a warm send-off across multiple corporate memos, Bond was not even mentioned by CEO Satya Nadella, Sharma, or newly promoted EVP Matt Booty in their internal communications.
Her own farewell note to staff did not land until hours after the official announcement—a sign, per The Verge, of just how chaotic the rollout became after the news leaked days ahead of schedule. This oversight highlights the internal turmoil and lack of cohesion during the transition period.
'This is an Xbox' Campaign Reportedly Rubbed Employees the Wrong Way
At the center of Bond's troubles was the controversial 'This is an Xbox' marketing campaign. This push aimed to redefine Xbox beyond console hardware by positioning phones, tablets, and TVs as Xbox devices. However, The Verge reports that the campaign offended many Xbox employees internally and was part of a broader strategy that had been repeatedly questioned within the company.
Bond had also announced an Xbox mobile gaming store at the Bloomberg Technology Summit in mid-2024, promising a July launch. Nearly two years later, the store still does not exist, adding to the frustration and skepticism surrounding her leadership.
Xbox Hardware Revenue Declines Under Bond's Watch
Meanwhile, Xbox hardware revenue has declined for three straight fiscal years under her watch. The multiplatform vision she championed—playing Xbox everywhere except, apparently, on an actual Xbox—did not translate into growth. This failure to boost hardware sales or successfully expand the brand's reach contributed significantly to the internal dissatisfaction and strategic reassessment.
Most Employees Were 'Relieved' by Her Departure, Report Claims
The Verge, citing over a dozen current and former Microsoft employees, reports that most were relieved Bond was leaving. Multiple sources described her as tough to work with, alleging she built a team culture where questioning the strategy meant being pushed out. Her ability to forge partnerships with developers and external companies, however, earned some praise, indicating a mixed legacy.
What makes the whole situation particularly awkward is that Bond was executing this strategy under Spencer's leadership. Yet Spencer walked away with a dignified retirement narrative and public gratitude, while Bond bore the sharper end of internal frustration and blame.
New CEO Asha Sharma Promises 'The Return of Xbox'
New CEO Asha Sharma has already promised 'the return of Xbox' and a renewed focus on console—a clear signal that the previous direction was not cutting it. Whether Sharma, who openly admits she is not a gamer, can actually pull off a turnaround is another question entirely, leaving the future of Xbox uncertain amid these leadership changes and strategic pivots.
