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Microsoft insider Clippy spills particulars on large Xbox shakeup

February 21, 2026
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The Xbox model simply underwent a seismic shift. On Friday afternoon, information broke that Microsoft Gaming CEO Phil Spencer had retired from the corporate. Additionally out was Sarah Bond, who resigned from her position as President at Xbox. Asha Sharma, President of CoreAI at Microsoft, stepped in to steer the Xbox model as CEO.

It’s a whirlwind of reports that’s positive to depart the business speechless. What’s subsequent for Xbox within the wake of such a serious change? Does Sharma’s new position imply that we should always count on a complete pivot to AI? Is that this the top of Xbox as we all know it? Analysts will little doubt spend the subsequent few weeks untangling a sophisticated net of reactions as developments in Xbox’s enterprise drip out.

Complicated questions like this demand clear solutions. And there’s nobody higher to supply these solutions than somebody who has labored within the advanced Microsoft ecosystem earlier than: Clippy.

Raised in a world earlier than the arrival of generative AI, the paperclip helper constructed his popularity on guiding customers by the complexities of Microsoft merchandise. I sat down with Clippy to grasp what precisely is going on at Microsoft and what’s subsequent.

Thanks for talking with me right now, Clippy. I need to get your ideas on some information at Microsoft as somebody who’s seen the internal workings of the corporate.

[Clippy turns into a paper airplane and flies back into his seat.]

Hello, I’m Clippy, your Microsoft helper. Would you want some help right now?

Sure, thanks. So, as we now know, Spencer and Bond are out at Xbox. Many individuals are questioning what this implies for the corporate. What do you make of the chaos?

It appears such as you’re confused about Xbox! Would you want assist?

> Get assist understanding Phil Spencer?

> Proceed interview with out assist

Effectively, no, I feel I perceive the Spencer half. His departure isn’t the largest shock provided that the Xbox enterprise has been in dire straits in recent times. We’ve heard experiences of demanding targets imposed on the model, which have led to pricier {hardware} and companies. Naturally, he was at all times going to be susceptible as a sacrificial lamb. I feel what occurred there’s most likely simple.

Okay! I’ll allow you to proceed the interview with out assist. Let me know for those who want he—

Effectively, wait, I’ve another questions.

Okay! What can I provide help to with?

Let’s begin with the Sarah Bond element. It was at all times handled as a foregone conclusion that she would take over Xbox as soon as Spencer retired someday. Her resignation appears to be an indication of some inside chaos that’s but to be uncovered. I imply, experiences recommend that Bond didn’t even ship a proper resignation e mail to the Xbox workforce, one thing that appears to point that the breakup was messy.

Okay, so that you need assist writing an e mail?

No.

Okay, do you’ve gotten any questions on Workplace?

Effectively, yeah, I suppose that’s what I’m getting at, in a manner. What’s the workplace tradition like inside Xbox proper now? From an outdoor perspective, it feels just like the imaginative and prescient for the enterprise, which was led by Spencer, has completely fallen aside. Bond splitting signifies to me that one thing is altering in regards to the course of Xbox internally, which possibly Bond doesn’t agree with. Morale inside Xbox should be low proper now, and I’ve to surprise if that can result in extra resignatio—

[Clippy begins to take a nap on a little pad of paper, with big Zs rising from his head.]

Clippy?

[Clippy snaps to attention, turns into a bicycle, rides around in a circle, and skids to a stop.]

Hello, I’m Clippy, your Microsoft helper. Is there the rest I may also help you with right now?

Sure. Assist me perceive the place AI matches into this. With Asha Sharma coming into the image, that appears to point that Xbox goes to go all-in on generative AI. I imply, we’ve already seen the model pushing in the direction of that for fairly a while. It wasn’t too way back that Microsoft put out an AI-generated model of Quake to point out off what its tech may do inside gaming. However on the similar time, Sharma is pushing again towards that narrative. In an inside memo, she promised that she wasn’t going to flood the Xbox ecosystem with “soulless AI slop.” Followers is likely to be skeptical of that line given Microsoft’s huge funding in generative AI. One thing isn’t fairly proper there, is it?

Would you want me to carry out a spell test?

Do you imply a odor test?

It appears such as you misspelled spell. Would you want me to right that?

I don’t suppose so, no.

Okay!

[30 seconds of silence pass.]

Nice. So I assume I’m simply left questioning—

Do you know that I may also help you with plenty of issues in Microsoft Workplace? For instance, I may also help you write an e mail—

No, I’m extra asking you the place Xbox goes from right here. I’ve been struggling to seek out a solution to that query within the instant wake of all this. My kneejerk response is to say that the Xbox model, as we all know it, is useless. That looks as if the plain takeaway after years of shuttered studios, canceled video games, the demise of console exclusives, and numerous different enterprise choices that fly within the face of standard console market knowledge. However Sharma maintains that she is dedicated to persevering with Xbox’s console enterprise. Each query simply results in extra questions, and irrespective of how a lot I dig into it, I’m simply not discovering the solutions I would like.

I’m sorry.

What?

I’m sorry that I can’t provide help to discover the solutions you want right now.

[A big cartoon teardrop falls from Clippy’s eyes.]

Oh. Oh, Clippy, no. It’s not your fault. I don’t suppose anybody has the solutions to this proper now, truthfully. As a lot as I need to break this down and provides readers some sense of what to anticipate subsequent, I feel the truth is that we’re going to have to attend for the mud to settle. The information simply broke. Issues are going to be chaotic for a number of weeks. We’re going to listen to numerous accounts from anxious builders inside Xbox and leaked particulars about Sharma’s imaginative and prescient. There are going to be rumors and misinterpretations. This isn’t one thing {that a} spell test goes to clear up. We’re going to wish to take it because it comes and settle for that it’s going to be a complicated change with no instant solutions.

Okay. I’ll go away you alone for now. Let me know when you’ve gotten any questions that I can reply!

I’ll, Clippy. I promise I’ll.

[Clippy sprouts angel wings and ascends into a beam of bright light above him. I think he died?]



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