Xbox CEO Asha Sharma is bringing in several CoreAI leaders as Microsoft looks to fix Xbox’s recent gaming revenue decline.
Xbox has been going through a lot lately, and fans have not been quiet about it. Microsoft recently made some big Xbox changes, including price cuts for Xbox Game Pass, but that move also came with a major catch: future Call of Duty games will no longer launch day one on the service.
For many players, that felt like a mixed deal. Lower prices are nice, but losing one of Game Pass’ biggest day-one draws is not exactly a small change. Now, Microsoft is making another major change, this time at the top of Xbox leadership.

New Xbox CEO Asha Sharma is overhauling the team and bringing in several leaders from Microsoft’s CoreAI group, where she worked before moving to Xbox earlier this year. This comes after Xbox saw gaming revenue decline in four of the past six quarters, putting more pressure on Microsoft to get the business moving in the right direction again.
Xbox Leadership Overhaul Brings CoreAI Talent Into Key Roles
According to a new report from CNBC, Sharma told Xbox employees in a Tuesday memo that the company needs to change the way it works and how it is organized. Sharma became Xbox CEO in February 2026 after longtime gaming chief Phil Spencer announced his retirement.
Sharma seems to believe Xbox is moving too slowly, spending too much time looking inward, and not enough time focused on players, developers, and the wider community. That is a pretty direct message for a company that has been trying to find its footing across consoles, Game Pass, cloud gaming, PC, and its wider Xbox ecosystem.

Here is the key statement from Sharma’s memo, as reported by CNBC:
“We need to evolve how we work and how we are organized across our platform. Right now, it is too hard to ship impact quickly. We spend too much time inward instead of with the community, and we lack the depth we need in some of the fundamentals.”
As part of this leadership overhaul, Sharma is bringing in several names from CoreAI and related product teams:
- Jared Palmer, former CoreAI VP of Product, is joining Xbox as VP of Engineering. He will work on product, engineering, developer tools, infrastructure, and overall product quality.
- Tim Allen, former CoreAI VP of Design, is joining Xbox to lead design.
- Jonathan McKay, former CoreAI Head of Growth, is joining to lead Xbox growth, data platform, and analytics.
- Evan Chaki, former CoreAI General Manager, will focus on simplifying development and improving how Xbox operates.
The big question now is: will this CoreAI-heavy leadership reset help Xbox fix its growth problem, or will fans see it as another internal reshuffle while waiting for stronger games, clearer hardware plans, and a better reason to stay invested?

What do you think about Xbox bringing in CoreAI leaders for this major leadership overhaul? Let us know your thoughts in the comments below!
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