Microsoft Gaming Chief Phil Spencer on ‘A Minecraft Movie’ Gamble, ‘Fallout’ Season 2 and Mixing Hollywood Pursuits With Xbox Biz Priorities

Executives from Microsoft, Warner Bros., and Legendary can all let out a shared sigh of relief since “A Minecraft Film” has become a verified success following its strong performance during its second weekend at the cinema.

Approaching the premiere of the movie starring Jack Black and Jason Momoa on April 4, there was a lot of speculation about its potential success. Microsoft Gaming CEO Phil Spencer was prepared for any response. There’s a sense of optimism given Microsoft’s successful “Fallout” TV series on Amazon, but there’s also the clear risk, considering the cancellation of their “Halo” adaptation on Paramount+. Plus, the industry has seen its fair share of ups and downs – for every success like “The Last of Us” or “The Super Mario Bros. Movie”, there’s usually a project like “Borderlands” that sets the genre back.

With the April 4 release of the movie starring Jack Black and Jason Momoa, anticipation was high about its potential success. Microsoft Gaming CEO Phil Spencer was ready for any reaction. The positive vibes are there due to their successful “Fallout” TV series on Amazon, but there’s also the risk, given the cancellation of their “Halo” adaptation on Paramount+. Furthermore, the video game adaptation industry has seen its share of success and failure – for every hit like “The Last of Us” or “The Super Mario Bros. Movie”, there’s usually a disappointment like “Borderlands”.)

However, despite concerns about potential failure, the ambition of the gaming titan to venture into Hollywood was stronger, and this daring step ultimately proved beneficial for Spencer, the creator of “Minecraft” at Mojang, as well as Microsoft’s squad specializing in franchises, under the leadership of Kayleen Walters.

Spencer had a conversation with EbMaster for an upcoming feature article about the movie’s premiere. He also shared his aspirations for “A Minecraft Movie” along with details on future adaptations of Microsoft intellectual properties, such as the anticipated “Fallout” Season 2. However, he emphasized that Microsoft Gaming and Xbox’s main focus remains on video games.

What will be your metric for success for “A Minecraft Movie” within Microsoft?

I aim to return our focus towards appreciating our Minecraft player community, given its immense size and longevity in the gaming industry – over 15 years now. This vast community of players and creators has made the game incredibly successful, and so when we take steps like this, it provides a chance for more people to discover “Minecraft”. Perhaps they don’t usually play video games, but seeing “Minecraft” on the big screen might spark their curiosity: “What is this Minecraft thing?” This could lead them to become invested in it.

However, what matters most to me are the long-term players and community members. When they see this, they feel a sense of pride because they’ve been investing their time into something that’s now being showcased on the big screen and performing well. This is my primary concern: the feelings of the people – do they feel respected by our actions towards the Minecraft IP? Does it resonate with the franchises we’ve built over the years?

As a movie buff, I’d put it like this: When we release our movie, more gamers will flock to play “Minecraft” on all platforms. Since “Minecraft” offers various business models for players to invest in while playing, the success of our film will be reflected in increased revenue for the game. This is a tangible measure of the impact our movie has on raising awareness about it. With “Minecraft” being an established and thriving business, we want to ensure that any collaboration enhances rather than detracts from its quality and reputation. That’s why we’ve been careful in selecting the right partner, developing creative ideas, and ultimately aiming to make the gaming community proud with our stewardship of this world.

With that in mind, how do you decide what IP you’re willing to take a risk on, and manage expectations and prepare for the chance the movie underperforms?

In the realm of entertainment, which encompasses game development, filmmaking, television production, and music creation, it’s crucial to understand that not everything we produce will be a success. The probability of a hit isn’t always 100%. Instead, fostering an internal culture that encourages innovation and the creation of new intellectual properties (IP) is essential. This means embracing the fact that some projects will surpass our expectations, while others may fall short, and using these experiences as learning opportunities to progress as a unified organization. This mindset is key to being part of Microsoft Gaming and Xbox.

When examining this situation, it’s crucial to consider whether the team brings a fresh perspective on their objectives, especially when it comes to creating video games. Are they collaborating with someone who truly grasps the essence and foundation of their franchise? If so, then it’s essential to empower them. This support extends not only to triumphs but also setbacks. The next project is always vital, and it’s crucial to foster a work environment that encourages taking risks and betting on creative, innovative, and fresh ideas. I believe the “Minecraft Movie” will be an example of such endeavors.

What are your goals for how you want Microsoft to be viewed within Hollywood and the larger entertainment industry outside of the gaming biz?

Over the years, my experience in video games has made me notice a sense of envy towards movies and TV shows, particularly their storytelling prowess and the captivating worlds they create, such as “Star Wars” or “Star Trek.” However, I’m thrilled to see that the gaming industry is now recognized for its ability to produce rich narratives and compelling characters. In fact, these stories are so profound that they can be adapted into other mediums like movies or TV shows. For instance, “The Last of Us,” the upcoming “Mario” film, and even our own game, “Indiana Jones and the Great Circle,” released in December, which I believe presents one of the finest “Indiana Jones” tales. If you were to set a movie around that same kind of storyline, I firmly believe it would be feasible due to its depth. In essence, I think the story is robust enough to carry a film.

In essence, we strive for our gaming universe and characters to be captivating, engaging, and thriving, such that they could be adapted for television shows, films, and other media platforms. This trend seems to have originated from books, as demonstrated by “Lord of the Rings,” and later expanded into comics with franchises like Marvel and Batman. Now, it appears that the entertainment industry is taking notice of video games due to their vast communities and intricate narratives. As a part of this gaming world, I find it exhilarating to see our virtual realms reaching new audiences and viewers.

Is there Microsoft IP that you think shouldn’t be adapted, or is it more, anything could be, it’s just about how it’s done. Do you try to do “Warcraft” again? Would you never do “Call of Duty?” Are there things that you wouldn’t touch or you could, but it needs to be done a certain way?

The video game industry thrives independently and doesn’t necessarily require additional platforms. To succeed, you need a collaborative partner who appreciates our team and the narrative of our intellectual property (IP). They should be allowed to navigate the process on their own terms. My main concern is avoiding a situation where we feel compelled to produce a game, film, or TV show for every franchise. Instead, it’s essential to focus on the artistic opportunities that linear media provides for our franchises, rather than turning it into a licensing deal.

A new trend coming up in entertainment is that people want to develop new IP and own it from the beginning across mediums: We’re going to make it from the beginning, we’re going to own it, we’re going to do the game, and we’re going to do the TV show, and we’re going to do the movie, and we’re going to make the physical products. Is Microsoft talking about doing that as you develop new things? Owning it and producing the adaptations yourselves?

To be straightforward, it’s true that I’m not the center of attention here. When it comes to leisure activities, I prefer playing video games at night instead of watching a lot of TV shows or movies. However, our team boasts a rich history spanning decades in game development. We take great pride in launching new franchises, and our latest releases include “Avowed” and soon-to-be-released “South of Midnight.” I’m passionate about keeping our focus on being a top-tier video game creator. While other opportunities might arise, we prioritize excelling in interactive entertainment, video games specifically. We primarily initiate new intellectual properties by asking, “How will it play?” as the mechanics of playing our franchises are a crucial aspect of our game development process. I simply want to encourage our teams to continue innovating in this area.

Due to the interactive and ongoing nature of the gaming industry, do you find Microsoft is looking more at what fans and users say and responding to it than a film studio or a TV studio would? And if you find you have more pressure to respond to those reactions than your studio partners?

In the realm of video game development, the boundary between creators and players often feels quite delicate. The discussion surrounding “Minecraft” serves as a compelling illustration. Today, “Minecraft” remains as popular as ever, and its success as a franchise is noteworthy. Over the past year, approximately two-thirds of our new “Minecraft” players hail from outside the US, which is fantastic news. Gathering input on maintaining and expanding something like “Minecraft” is vital. In contrast to TV and movie production where you create and then release, game development requires a constant connection with the audience and ongoing evolution. It’s not about superior or inferior skills, but rather a different approach that allows us to keep “Minecraft” as relevant today as it has ever been.

You have “Fallout” Season 2 coming, there is a “Minecraft” TV series in the works at Netflix. What can you tease about those, as well as what other adaptation projects you might have in the works right now?

To our fans, it’s clear that we’re continuously improving and gaining more self-assurance as we progress. This journey provides us with valuable insights, energizing both us and the community. Each time we collaborate with a talented partner, we learn something new about storytelling, such as in our work on “Halo” [the TV series adaptation at Paramount+]. Lessons from projects like “Halo” and “Fallout” build upon each other, and while some may not pan out as expected, it’s all part of the process. Rest assured, you can expect more exciting projects because our growth in confidence is fueling us to continue learning. I don’t want to reveal specific details too soon, as I want to give these projects time to develop without adding unnecessary pressure. However, I am genuinely enthusiastic about the stories our teams are crafting now and the games they’re launching. We’re also encouraged by the growing interest from traditional media in our work.

On the gaming side, what titles are you most excited about for the rest of the year?

As a devoted gaming enthusiast, I’m absolutely thrilled about the lineup of games we have for the remainder of this year. The recent release of “Avowed” by Obsidian has only confirmed their exceptional talent. We’ve discussed “The Outer Worlds 2,” “South of Midnight,” and “Doom.” There are more titles, some of which haven’t been announced yet, that I’m carefully keeping under wraps to avoid any spoilers.

With the successful launch of “Indiana Jones and the Great Circle” back in December, and the upcoming release on PlayStation, do you have larger plans for updates to that game, as well as a potential franchise?

We’re extremely satisfied with “Indy”, the team, and the public response. There’s definitely potential in this franchise, and I won’t say more about it. Our launch on PlayStation is coming up soon, which should be exciting! I was impressed by Machine Games for breathing new life into someone else’s IP, and I’m eager to see what they come up with next. There were some who questioned the first-person versus third-person perspective initially, but after playing it, you become Indy himself. Moving forward, I also want our teams to have the freedom to create their own games and franchises. We have numerous opportunities to tell fresh stories, and I want to ensure that’s an option for us.

Switch 2 is set to be released soon. As you’ve begun to branch out with games available on PlayStation and Nintendo consoles, do you have plans for specific projects on Switch 2?

We’ve been backing Switch 1, now we wish to back Switch 2. Nintendo has always been a valuable partner for us. We believe that by extending our reach to gamers who aren’t PC or Xbox users, we can expand our community and keep investing in our beloved franchises. Supporting Nintendo aligns with our vision for the future, ensuring they continue to support our games, which is crucial for our growth.

Does Nintendo revealing its next-gen console make you antsy to announce what Xbox has coming next in that space?

I strongly advocate that we, within our industry, should prioritize our communities and the player base we’re cultivating. I draw motivation from various creators and other platform leaders. However, I firmly stand by our strategic vision. Clearly, we’re redefining what Xbox represents while connecting with players in numerous ways. There are approximately 3 billion individuals worldwide who play video games, and every morning, I ponder how Xbox can become increasingly significant to these 3 billion gamers. This is achieved by ensuring we’re pioneering in making our games and platform features accessible across various platforms, such as Cloud gaming, PC, or console. Thus, our primary goal is to expand our franchises and platform to be a crucial part of the gaming experience for as many of these 3 billion gamers as possible.

How are you viewing Game Pass’s ongoing role in the larger Xbox business right now?

I’ll begin by discussing the number of individuals engaging in gaming activities. In my perspective, Game Pass serves as an additional choice for those seeking to play. We offer various ways for people to enjoy games, ranging from free-to-play to purchasing games, and even discounted options. When considering Game Pass, my aim is to ensure that playing hours continue to increase, that more people discover this as a means to expand their gaming library, and we maintain our focus on that.

At present, our primary growth areas are PC and Cloud platforms, which aligns with the notion that while consoles form a solid and established business, they are not currently experiencing significant expansion in the gaming sector. Therefore, we’re witnessing strong growth on PC and Cloud platforms, and console remains a robust part of Game Pass. However, it is important to note that there isn’t a compulsion for Game Pass to be the sole means through which people play games. If all subscribers chose instead to purchase their games, it would also benefit our business.

I view Game Pass as a suitable choice for some individuals, but not for everyone. If you only play one or two games per year, then Game Pass might not be the best option for you; instead, it would make more sense to purchase those specific games. However, I want to give you the freedom of choice. So, we ensure that all games available on Game Pass are also purchasable. We’re making these games accessible for purchase in a wider variety of locations.

As for measuring success, I look at the overall hours played by Xbox users on our games, and this number is consistently increasing. Game Pass has played an important role in this growth, but I don’t solely focus on it as a standalone solution. Instead, Game Pass is part of the broader strategy we use to attract new players to Xbox.

How are you preparing for game-specific tie-ins and updates for “Fallout” Season 2 and “A Minecraft Movie” release?

It was delightful to have “Fallout 76” and “Fallout Shelter,” and the release of the “Fallout” TV series boosted their popularity even more. We also had a remastered version of “Fallout 4” available for those who wanted to try something fresh in the Fallout universe, given their love for the show. However, we didn’t quite hit the mark with timing and readiness when we knew the show was coming out; instead, it was a learning experience for us. With “Minecraft,” we’re striving for more unique content that complements the movie, but this is an excellent demonstration of our learning curve. Coordinating production schedules for new games and movies simultaneously seems to be a challenge beyond our current creative capabilities, and I’m not sure it’s even our goal. However, for franchises like “Minecraft” or “Fallout,” which have dedicated communities, it makes perfect sense to enable fans of the movie or TV show to express their love within the game. The team’s plans for “Minecraft” in this regard are commendable.

“A Minecraft Movie” is releasing on April 4, the 50th anniversary of Microsoft. How do you reflect on your own time at the company in this moment?

I’m set to take on the gaming role at Microsoft. I find it fascinating how gaming has significantly influenced the public’s perception of what Microsoft represents. I frequently emphasize this point to our leadership team here, highlighting that our oldest franchise within Microsoft is “Flight Simulator,” a franchise that predates Windows and Office. Indeed, the longest-running, still in development franchise within the company is “Flight Sim.” However, to appreciate how gaming has always been an integral part of Microsoft, from early projects like Adventure, to the significant role we play today, I find it simply amazing. Over the course of my many years working at this company, gaming wasn’t always as prominent as it is now. But seeing its transformation and impact on us as a team and the company as a whole is truly inspiring.

Our gaming background grants us a deep understanding of customers, consumers, and communities, which we enthusiastically pass on within our organization. Examples like “A Minecraft Movie” demonstrate our commitment to valuing and listening to our community, ensuring they feel respected and understood in the products we create. This approach to community engagement is not exclusive to gaming; it’s a goal that our entire company aspires to achieve. On a personal note, starting as an intern here in 1988 and witnessing the growth of this company over five decades is truly inspiring. I eagerly anticipate celebrating this milestone.

This interview has been edited and condensed.

2025-04-15 21:49