Xbox Legend Albert Penello Passes Away: “A Pillar of Gaming at Microsoft and Amazon”

Albert Penello, a former planning director at Microsoft involved with the OG Xbox, Xbox 360, and Xbox One, has passed away from cancer. This occurred on December 31st, 2025, with Penello survived by his wife and daughter.

Various industry figures have since expressed their condolences, including Larry Hryb, formerly Major Nelson and director of programming for Xbox Live. “Albert was a pillar of gaming at Microsoft and Amazon, a brilliant, trusted voice in our industry, a loyal friend, and most importantly, a husband and father who was profoundly loved by his wife, Dara and daughter, Lily.”

Former Xbox president Peter Moore also commented on Penello’s passing, calling him a “true legend” and the “ultimate optimist, always energetic and willing to take on whatever project he was presented with (remember HD DVD?). He will be sorely missed and leaves a big hole in the heart of the extended Xbox family.”

Mike Ybarra, former Blizzard Entertainment president, also commended Penello, calling him “a kind person, sharing, and having an incredible passion for the hobby we all love…. gaming. His energy and commitment were second-to-none. His impact on Xbox was noteworthy. Always debating for the right answer and striving to keep players first.”

Since leaving Microsoft in 2018, Penello had worked at Amazon Web Services. However, interestingly enough, sources speaking to Windows Central reveal that he acted as a consultant for Xbox’s next-generation hardware for the past several months, which showcases his commitment to the brand that he helped shape.

Penello had also kickstarted a project to create a Mighty Orbots deluxe figure based on the 1984 cartoon. He founded Machine Dream Toys and acquired the series’ trademark for Mighty Orbots Deluxe Combining 12″ Figure, which sees five Orbots combining to form the titular figure. The passion project owes its life to Penello’s penchant for collecting 80s robot figures.

There are currently eight days left for the Kickstarter, with $61,673 pledged out of the $95,000 goal. Despite Penello’s passing, the remaining team is “more committed than ever to making this happen.”