Xbox fans have been left divided after Microsoft announced Phil Spencer, boss of its gaming division, and Xbox president Sarah Bond would step down from their roles.

Spencer, who is retiring after nearly 40 years at Microsoft, will be replaced by Asha Sharma - an executive who previously oversaw some of the firm's AI initiatives.

But the executive shake-up has sparked online debate and speculation about Sharma's lack of gaming background, with some calling it "the end of Xbox".

It follows a challenging year that has seen major layoffs, poor sales and increasing development costs for the gaming giant.

Xbox also revealed on Friday that Matt Booty, who previously worked under Spencer as corporate vice president of Xbox Game Studios, had been promoted to chief content officer.

In a statement on Microsoft's website, Booty appeared to try to ease concerns that the reshuffle could mean a wider shake-up across Xbox, saying "there are no organisational changes underway for our studios".

But fans have continued to criticise Sharma's appointment as Spencer's successor, citing her lack of gaming and industry experience.

Some mocked the executive's attempt to prove her credentials by publicly sharing her Xbox Gamertag, showing how many games she has recently played - 29, but all seemingly in the past month.

Jez Corden from Microsoft news outlet Windows Central said Sharma's "expertise in other fields" and background at firms such as Facebook owner Meta may have helped her secure the top job at Xbox over other executives, such as Bond.

"The gaming landscape is struggling to find its footing faced with competition from instant-gratification platforms like Instagram and TikTok," he told the BBC.

"This is where Microsoft has identified weakness in its platform, and opted for Asha's expertise to fill the gap."

Victoria Phillips Kennedy, news reporter for gaming publication Eurogamer, questioned whether Sharma's background would mean "we see Xbox be more aggressive in its adoption of AI in the development pipeline".

Sharma has meanwhile said she will not look to "flood our ecosystem with soulless AI slop" in her new role.

"Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us," she added.

Phil Spencer's Xbox legacy

Phil Spencer joined Microsoft as an intern in 1988, working his way up through the company to eventually become chief executive of Microsoft Gaming in 2022.

Under his leadership, he oversaw major acquisitions, including Minecraft creator Mojang and the biggest deal in gaming history with Call of Duty maker Activision Blizzard.

Spencer also launched Xbox Game Pass in 2017, a subscription service that allows players to download and play games on their PC and other devices, not just an Xbox.

Freelance gaming journalist for IGN and Eurogamer, Vikki Blake, said it would be "hard to imagine Xbox without Phil Spencer".

But she told the BBC his departure was not "completely shocking" given the brand's recent struggle to remain relevant in a crowded console market and its decision to "move away from platform exclusives" with titles such as Halo.

In posts on X, Spencer said he felt "lucky" to have worked with "so many passionate creators, partners, colleagues and players across the industry".

"I'll see you online," he added.