The rumored Xbox layoffs arrived earlier today, and they were even deeper than expected. Microsoft made significant job cuts across the board, including the cancelation of Rare’s Everwild and a new MMO from The Elder Scrolls Online team. But Xbox boss Phil Spencer still has his job, and despite rumors to the contrary, he isn’t retiring.
Xbox’s head of communications Kari Perez told The Verge that, “Phil is not retiring anytime soon.” That was in response to a rumor spread by Call of Duty leaker GhostofHope that claimed Spencer will step down from his role as Microsoft Gaming CEO after the next-generation Xbox console launch, which would pave the way for Xbox president Sarah Bond to succeed him. As that rumor gained traction, Microsoft communications chief Frank Shaw posted on X that it was made up.
In response to the outcry over the layoffs, Spencer claimed that the cuts were necessary and touted the future of Microsoft’s gaming division.
“We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities,” said Spencer. “We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
Among other canceled projects, the Perfect Dark reboot was shut down today when the studio behind it, The Initiative, was closed. Approximately 9,000 employees lost their jobs across the entire company, including non-Xbox divisions, as part of the latest round of cuts. However, a separate report suggests that all of the games from last month’s Microsoft Showcase are “safe” and they will still be released as planned.
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