On Wednesday, Microsoft, known for creating Windows and Xbox, experienced a gloomy day with the announcement of job cuts totaling over 9,000, bringing their projected total to 15,300 by 2025. The gaming division was one of several hit hard by these reductions. As part of this downsizing, several projects were canceled, such as Everwild from Rare Studios, an upcoming MMORPG from ZeniMax Online Studios, and Perfect Dark from The Initiative. Regrettably, The Initiative studio itself has been closed.
It can’t be made any better: this is a disappointing day for Xbox fans, as these layoffs come at a time when the game industry has been cutting back harshly for years. This news dampens the enthusiasm generated by Microsoft’s gaming brand, which had recently gained momentum from the Xbox Games Showcase and the announcement of the Xbox Ally handheld devices.
Despite the ongoing negativity, additional whispers circulated, this time originating from Call of Duty leaker TheGhostOfHope. The rumor suggested that Phil Spencer, CEO of Microsoft Gaming and head of Xbox, might be leaving his position following the launch of the next-generation Xbox console (supposedly set for 2027). If true, Xbox president Sarah Bond would reportedly assume leadership responsibilities.
However, Microsoft CCO Frank Shaw just shot down the reports, saying that they were “made up.”
so long as by “summed it up” you mean “made it up.”July 2, 2025
It seems that there is no confirmed retirement plan for Phil Spencer at the moment, despite widespread speculation. While it’s likely he may eventually retire, possibly following the release of the next-generation Xbox console, Microsoft President Sarah Bond appears to be a strong contender to take over his role.
Microsoft spokesperson Frank X. Shaw essentially stated: “If by ‘summed it up,’ you imply ‘created it,’ then that’s correct.” This is an unequivocal denial.
Spencer has been a member of the Xbox team since the creation of the brand and the debut of the first Xbox console in 2001. He was promoted to lead Xbox in 2014. In 2017, he ascended to Microsoft’s executive leadership group as the vice president of gaming, and assumed the role of CEO of Microsoft Gaming in 2022 when the company announced its plans to acquire Activision Blizzard (the acquisition was finalized in late 2023).
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2025-07-02 22:39