Microsoft has confirmed that Phil Spencer will continue to lead the company’s gaming division and does not intend to retire any time soon. The statement comes after rumors indicated that the current CEO of Microsoft Gaming would step down after the launch of the next generation of Xbox , especially considering all the changes Microsoft has undergone in recent days .
Kari Perez, Xbox’s head of communications, denied the speculation in response to statements from leaker GhostOfHope , known for anticipating information about the Call of Duty franchise. He had stated that Sarah Bond, the current president of Xbox, would take over leadership after Spencer’s departure. In parallel, Frank Shaw, Microsoft’s head of communications, stated on social media that at least part of the rumors were made up.
Phil Spencer has led Microsoft’s gaming division since 2014, when he was promoted from Microsoft Studios. Since then, he has overseen major projects such as the expansion of Xbox Game Pass, the launch of the Xbox Series X and S consoles, and the acquisition of companies such as ZeniMax Media and Activision Blizzard.
Phil Spencer remains in office despite cuts
Despite Spencer’s stay, Microsoft continues to make significant cuts across several areas of the company. The Xbox division was one of the hardest hit , with around 9,000 layoffs across the company. Among the canceled projects are The Initiative’s Perfect Dark reboot and Rare’s Everwild. Turn 10, the studio responsible for Forza Motorsport, also laid off more than 70 employees.
Another canceled game was ZeniMax Online Studios’ MMORPG, known internally as Project Blackbird. Development on the project began in 2018, but the company opted to halt production during its current restructuring. Still, Microsoft said the games showcased at the last Xbox Showcase event are still in the company’s plans and will be released as scheduled.
Phil Spencer also spoke about the cuts, highlighting that the company needs to make strategic decisions to ensure sustainable growth. According to him, the priority now is to focus efforts on projects with the greatest potential and ensure quality experiences for players in the future.
Changes at Microsoft are deeper
The changes at the company, however, do not stop there. Microsoft is implementing significant changes in its gaming division, which involve large-scale layoffs, project cancellations and a growing focus on artificial intelligence.
According to reports from a company employee, these measures are impacting important studios such as The Initiative, ZeniMax Online, Rare, Turn 10 and Halo Studios. The same employee stated that the current focus is on restructuring. Thus, in this process, internal teams are being replaced by automated solutions and specialized outsourced studios.
