Report Blames Sarah Bond for Xbox Failures Amid Leadership Shakeup

Report Blames Sarah Bond for Xbox Failures Amid Leadership Shakeup

I was on a Discord call when the rumor hit: Xbox was cleaning house. You could feel the room lean in—half excitement, half relief. For a brief second, the brand felt less like a strategy and more like a headline waiting to happen.

I’m writing this because you and I both care what gaming looks like next. You remember Phil Spencer; you remember the blitz of ads calling Xbox a service more than a console. Now those moves have a face attached: Sarah Bond, once an heir apparent, is suddenly at the center of a narrative that reads like a falling arc.

"This is an Xbox" ad
Image via Xbox

At a recent ad buy, Xbox told people they could play its games on everything but an Xbox.

I remember seeing the “This is an Xbox” spots and feeling a jolt. The campaign read like a strategic pivot away from hardware—encouraging play on phones, TVs, and rival devices. That messaging—according to reporting from Tom Warren at The Verge—has left many inside Microsoft cold and given critics a simple storyline: who’s accountable when hardware sales dip?

Why was Sarah Bond removed from Xbox?

You can trace personnel shifts to culture and outcomes. Sources told Warren that internal confidence in Bond waned as the platform’s focus shifted. When a leader steers the ship toward cloud and cross-platform play, hardware becomes secondary; some employees saw that as an abandonment of Xbox’s core promise. The result: a power shift that ended with Bond and Phil Spencer exiting and Asha Sharma stepping in.

In meetings, people swapped whispers about a pivot that had been brewing for a year.

I spoke with people who described the moment as less a surprise and more a slowly stacking set of cues—hiring, ad creative, product roadmaps—that made the outcome feel inevitable. Those cues convinced insiders that the next era would center on software and AI, not consoles, and that belief changed loyalties. The story now reads as scapegoating to some; to others, it’s a tidy explanation for months of declining hardware momentum.

Who is Asha Sharma and what will she do at Xbox?

You should know her name: Asha Sharma comes from Microsoft’s AI ranks. Her elevation signals what Microsoft’s board wants to bet on next—AI, services, and Azure-linked gaming. That worries employees who fear an aggressive AI push across Xbox, potentially reshaping roles and opening another round of cuts.

I watched engineers trade notes the day layoffs were announced.

There was a real sense of exhaustion in those chats. For many, the company’s direction had become a house of cards—one public flop, one missed sales target, and the structure wavered. Bond is painted as the architect of the ad strategy; she is not the only actor in a script written at the executive level, but she is the most visible one to hold a name and a face.

That visibility is political currency in any corporation. When a product line underperforms, attention tightens. When an ad campaign is interpreted as telling customers to play elsewhere, grievances crystallize fast. You and I both know narratives stick easier than nuance.

Will Microsoft force AI into everything Xbox does?

The short answer is: