Phil Spencer Responds to Retirement Rumors

Microsoft’s sweeping wave of layoffs this week affected many departments, including the games division. The cancellation of projects like Everwild, Perfect Dark, and Zenimax’s new MMORPG hit the headlines like a bombshell. Following these developments, rumors began circulating on social media that Phil Spencer would be stepping down.

Phil Spencer Not Retiring

Xbox communications director Kari Perez told The Verge, “Phil is not retiring anytime soon,” putting an end to the rumors. It has become clear that Spencer will be handing over his duties to Xbox president Sarah Bond, especially after the release of the next-generation Xbox console, is not true.

Phil Spencer has been running Xbox since 2014 and was promoted to CEO of Microsoft Gaming in 2022. During that time, he led the company through major moves, including the Activision Blizzard acquisition. He said of the layoffs yesterday, “We’ve come to this point with tough decisions. Now it’s time to prioritize our future again.”

Spencer had said in recent months about Xbox games coming to rival platforms, “I’m not trying to get all the players to Xbox anymore. We want our games to reach more people wherever they’re played.” This statement signaled Xbox’s shift from a platform-centric strategy to a more inclusive game distribution approach.

In an interview last year, Spencer said he had no regrets about his decisions, saying, “I’ve probably made the worst gaming decisions. We’ve turned down projects like Destiny or Guitar Hero. But I prefer to look forward rather than dwell on the past.” Spencer’s stance shows that he’s still strongly committed to Xbox’s future.

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