July 3, 2025 – Amid swirling rumors that Phil Spencer, the head of Xbox and CEO of Microsoft Gaming, is on the verge of retirement, Microsoft has recently stepped in to set the record straight, stating that he has no immediate plans to step down.
The speculation gained traction following Microsoft’s announcement of a new round of global layoffs affecting approximately 9,000 employees. Adding fuel to the fire, “GhostOfHope,” a well – known insider for “Call of Duty,” claimed that Spencer would retire from his position as Microsoft Gaming CEO after the launch of the next – generation Xbox, with Sarah Bond, the president of Xbox, set to take over the reins.
Although Microsoft’s response didn’t completely dispel all the rumors, it made it crystal clear that Spencer’s retirement is not on the horizon in the short term. Moreover, Frank Shaw, Microsoft’s communications director, took to the X platform to assert that at least some parts of these rumors were pure fabrications.
It’s worth noting that Spencer first took charge of the Xbox division in 2014, having been promoted from his role as the head of Microsoft Studios. During his tenure as Xbox chief, he has been at the helm of numerous significant initiatives. These include the release of the Xbox Series X/S consoles, a major push to promote Xbox Game Pass, the acquisition of major gaming companies like Activision Blizzard and ZeniMax Media, and the expansion of Xbox games to platforms such as PlayStation and Nintendo Switch.
Despite the fact that Spencer will remain in his position for the time being, Microsoft is still carrying out large – scale layoffs. The cuts have had a direct impact on Xbox studios and their staff. Games like “Perfect Dark” and “Everwild” have been canceled, and Turn 10 Studios, the developer behind “Forza Motorsport,” is set to lay off more than 70 employees.
