Phil Spencer, CEO of Microsoft Gaming, spoke with IGN’s Ryan McCaffrey at IGN Live 2024 after what many hailed as the best Xbox Games Showcase in years. The event featured fresh looks at upcoming major titles in Xbox’s expanded lineup, bolstered by its $69 billion acquisition of Activision Blizzard. Iconic Xbox franchises like Gears of War, Fable, and Perfect Dark shared the spotlight with new additions such as Call of Duty, World of Warcraft, and Diablo.
Studio Closures
A significant portion of the interview addressed the tough decisions made by Microsoft, including the closures of Arkane Austin and Tango Gameworks, which were met with industry criticism. Spencer acknowledged these closures’ difficulty and personal impact, emphasizing support for affected employees through severance and other measures. “The closure of any team is hard,” he admitted. “It’s not about my PR, it’s not about Xbox PR, it’s about those teams.”
Despite these closures, Spencer stressed the necessity of making hard decisions for business sustainability. “I have to run a sustainable business inside the company and grow. And that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to make.” He added, “We will continue to invest in what we’re trying to do at Xbox and build the best business that we can, which ensures we can continue to do shows like the one we just did.”
Spencer’s comments align with Xbox President Sarah Bond’s statement that the company’s commitment is to “making sure the business is healthy for the long term.” Microsoft laid off 1,900 people across its video game teams earlier this year. Spencer’s explanation, perceived by many on social media as a “non-answer,” only fueled further backlash with its textbook corporate language about “hard decisions” and “severance packages”.
Handheld Xbox
One intriguing discussion point was the potential for a handheld Xbox. While Spencer did not confirm any specific plans, he did not dismiss the idea either. “We’re always looking at new hardware possibilities,” he stated, hinting at Xbox’s exploration of expanding its gaming ecosystem. However, he deferred further details to Sarah Bond: “You’ll have to have Sarah Bond on, our president of Xbox, who is awesome. But the future for us in hardware is pretty awesome. And the work that the team is doing around different form factors, different ways to play, I’m incredibly excited about it.”
Spencer’s response falls short of an official announcement, but it indicates that the company may explore a handheld device, joining the likes of Nintendo Switch and Steam Deck.
Future Plans for Xbox
Spencer reflected on the evolving nature of the gaming industry, praising the internal and external teams for their creative efforts, citing examples like Perfect Dark, Hellblade, and the newly announced South of Midnight. “As the organization gets bigger, it’s more important that we can take bets together and try to do innovative, creative things,” he said.
Looking ahead, Spencer shared his vision for the future of Xbox and emphasized a commitment to expanding the availability of Xbox games across multiple platforms, including rival systems. “You saw an amazing collection of games that are coming to Xbox. They’re going into Game Pass day one, and Game Pass showed up so well,” he noted. This approach aligns with Xbox’s broader strategy of prioritizing accessibility and player choice.
Words by Khushboo Malhotra
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