Microsoft's gaming leadership has changed, with Matt Booty promoted to chief content officer and Asha Sharma, previously from the CoreAI products division, becoming the new CEO of Microsoft Gaming.

In a letter to employees, Sharma addressed concerns about pushing generative AI on studios like Activision and Bethesda. "We will not chase short-term efficiency or flood our ecosystem with soulless AI slop," she wrote, emphasizing that "games are and always will be art, crafted by humans."

Sharma committed to making "great games" with unforgettable characters and stories, empowering studios, and taking risks. She also promised a renewed focus on the Xbox console while acknowledging gaming now lives across devices.

This comes as Microsoft's gaming business, despite major acquisitions, has seen studio closures, layoffs, and console sales struggles. The company has invested heavily in AI for game development, but Sharma's letter signals a cautious approach to its integration.