Key Takeaways
1. Phil Spencer is confirmed to remain at Xbox for the foreseeable future, despite rumors of his potential departure.
2. Microsoft plans to lay off around 9,000 employees, with a significant number from the gaming division, causing backlash from Xbox fans.
3. Insider leaks suggest that Phil Spencer may retire after the next-generation Xbox console is released, with Sarah Bond poised to take over as CEO.
4. There is ongoing debate among insiders about the validity of rumors regarding Spencer’s exit, with varying opinions on the matter.
5. Microsoft is collaborating with AMD for future console development, with speculations of a new Xbox console being released in 2027.
Update (July 2nd, 2025): According to The Verge, Kari Perez, who leads Xbox Communications, has stated that Phil Spencer is not leaving the company. Perez mentioned “anytime soon,” implying that this might not indicate Spencer’s long-term intentions.
Microsoft Job Cuts
Microsoft has revealed plans to lay off about 9,000 workers, which amounts to 4% of its total workforce. After noticing that a significant number of the layoffs were in gaming, Xbox fans expressed their anger towards Phil Spencer. A letter he sent to employees, which emphasized the company’s ongoing success, only fueled the discontent. If a recent rumor is correct, Spencer could be stepping back from Xbox Gaming after a new Xbox console is launched.
Insights from the Gaming Community
TheGhostOfHope is known for providing mostly accurate leaks related to Call of Duty. The developers of the popular shooter have also been affected by the recent layoffs at Microsoft. On his social media, he claimed that Phil Spencer would retire from Microsoft Gaming after the next-generation Xbox console is released. Following this, Sarah Bond, who is currently the President of Xbox, would take over as CEO.
Debates on the Future
Now, some insiders are discussing whether this report is truthful. Jez Corden from Windows Central quickly responded, asserting that there are no plans for Spencer’s exit. However, Tom Henderson of Insider Gaming shared an article with more context. While Henderson can’t verify TheGhostOfHope’s leak, he mentioned that he has heard similar rumors during the Summer Game Fest.
Even if Spencer is contemplating leaving Microsoft Gaming, it’s still uncertain when the new Xbox console will be ready for launch. The company recently made a deal with AMD for future console development. Speculations suggest a release date in 2027, but the new system might be either a successor to the Series X or a high-end Windows PC.
Upcoming Releases
In the near future, Microsoft and Asus are set to unveil the ROG Xbox Ally handheld series this Holiday season.
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