Today saw the anticipated Xbox staff reductions, with more cuts than initially predicted. Microsoft implemented widespread job losses spanning various departments, resulting in projects like Rare’s Everwild being canceled and a new MMO from The Elder Scrolls Online team being shelved. However, it’s important to note that Xbox head Phil Spencer remains employed, and contrary to speculation, he has no plans to retire at this time.
Kari Perez, who oversees communication at Xbox, clarified to The Verge that Phil Spencer has no plans to retire in the near future. This statement came after speculation by Call of Duty leaker GhostofHope suggesting that Spencer might leave his position as Microsoft’s Gaming CEO following the release of the next-generation Xbox console. If true, this would open the door for Xbox president Sarah Bond to take over. However, it has been confirmed that this rumor is false by Microsoft’s communications chief Frank Shaw on X.
In the face of the uproar about the job losses, Spencer argued that these reductions were essential and emphasized the bright prospects for Microsoft’s gaming sector.
Spencer emphasized that it’s crucial for us to choose wisely now to ensure long-term success in upcoming years. A vital aspect of this plan is maintaining a strict focus on seizing the most promising opportunities. In other words, we will nurture what’s flourishing and invest our efforts into areas with the maximum potential. Simultaneously, we are committed to fulfilling the company’s expectations for our business. With this focused strategy, we aim to create exceptional games and experiences that will captivate players for many generations.
In addition to other terminated projects, the reboot of Perfect Dark was halted today following the closure of The Initiative, the studio responsible for it. This move resulted in around 9,000 employees losing their jobs across all divisions within the company, both Xbox and non-Xbox related, as part of recent cost-cutting measures. However, contrary to this development, a different report indicates that all games showcased last month at Microsoft’s event are still slated for release without any changes to their original plans.
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2025-07-03 00:39