Microsoft has addressed speculation regarding the retirement of Phil Spencer, head of Xbox, amid significant layoffs within the company. Spencer, who has been at the helm of Xbox since 2014 and currently holds the title of Microsoft Gaming CEO, is not expected to retire “anytime soon,” according to an official statement following the latest workforce reductions that impacted various Xbox studios and led to the cancellation of several projects.
Phil Spencer Remains at the Helm
Rumors surrounding Spencer’s retirement emerged after a tipster claimed on Wednesday that he would leave his position as Microsoft Gaming CEO following the release of the next-generation Xbox, with Xbox president Sarah Bond reportedly set to take over. This assertion was shared by the Call of Duty channel @TheGhostOfHope on X.
In a statement provided to Technology News, Microsoft refuted these claims, firmly stating, “Phil is not retiring anytime soon,” as conveyed by Kari Perez, head of Xbox communications. Microsoft’s communications lead, Frank Shaw, also dismissed the rumors on X, labeling them as false.
Spencer, regarded as a significant figure in the gaming industry, joined the Xbox team in 2001 after holding various roles at Microsoft. He ascended to the position of head of Xbox, Xbox Live, Xbox Music, Xbox Video, and Microsoft Studios in 2014 before being elevated to Microsoft Gaming CEO in 2022.
Impact of Microsoft and Xbox Layoffs
The question of Spencer’s future came to light following Microsoft’s announcement on Wednesday that it would be laying off approximately four percent of its workforce, translating to over 9,000 jobs. The gaming division was particularly hard hit, with staff reductions reported at several first-party studios, including King, Raven Software, Sledgehammer Games, Rare, Halo Studios, Turn10 Studios, and ZeniMax Online Studios.
In addition to the layoffs, Microsoft also announced the cancellation of the Perfect Dark reboot, effectively closing its developer, The Initiative. Other projects that have been scrapped include Rare’s action-adventure game Everwild and an unannounced MMO from ZeniMax Online. Xbox plans to phase out several unannounced projects within its portfolio as well.
In an internal memo addressing the layoffs in the gaming division, Spencer indicated that the difficult choices made were essential for ensuring the long-term success of Xbox. “I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger,” he stated. “The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities.”
