While Microsoft’s Xbox division is being hit with plenty of project cancellations, lay-offs, and even one studio closure, the company has confirmed that Microsoft Gaming CEO Phil Spencer is not stepping down from his position. According to The Verge, head of Xbox communications Kari Perez has said that Spencer will not be retiring.
“Phil is not retiring anytime soon,” said Perez in a statement. This confirmation came about because rumours had begun circulating that Spencer might also be one of the several people leaving the company. According to Call of Duty leaker GhostOfHope, Spencer would be retiring after Microsoft had launched its next-gen Xbox.
“Phil Spencer will be retiring from his role as CEO of Microsoft Gaming after the launch of the next generation Xbox,” wrote GhostOfHope on social media platform X, going on to write that Xbox president Sarah Bond would be taking over his role.
“Phil Spencer is working closely with Sarah Bond and her team to ensure a smooth transition for her take over as CEO of Microsoft Gaming once he retires,” the leaker wrote.
Spencer had been working with Microsoft’s gaming divisions for quite some time, officially taking over leadership of the Xbox division I 2014. Since then, Spencer has been a part of many of Xbox’s bigger initiatives, from the launch of Game Pass to the acquisition of several companies, from Bethesda to the relatively more recent Activision Blizzard. Most recently, Spencer was also likely a major executive when it came to Microsoft’s collaboration with Asus to make the ROG Xbox Ally.
In an interview from last month, Spencer described the collaboration with Asus as being the “tightest collaboration” that he had seen in his time with the company. “It’s really amazing to see the teams focusing on opportunities to make the experience better, and working really as one development team to realize that,” he said.
According to recent reports, Microsoft has started executing massive lay-offs across its divisions, including several of its studios. The reports have indicated that four percent of the company’s total workforce – around 9,100 employees – will be affected by these lay-offs.
As part of what appears to be a move to cut costs, the lay-offs are being accompanied by the closure of development studio The Initiative. The studio’s closure was announced through an internal email, which also announced the cancellation of projects like Perfect Dark and Everwild.
“We have decided to stop the development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio,” wrote Xbox Game Studios’ Matt Booty in the email. “As part of this, we are closing one of our studios, The Initiative. These decisions, along with other changes across our teams, reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.”
“We did not make these choices lightly, as each project and team represent years of effort, imagination, and commitment.”
Veteran developers and executives from studios under Microsoft are also seemingly leaving, with ZeniMax Online Studios having confirmed that its president, Matt Firor, will be leaving the company later this month. Reports have also indicated that Rare’s veteran game designer Gregg Mayles, as well as executive producer Louise O’Connor are also leaving the studio.
