Phil Spencer has been in charge of Xbox since 2014 to elevate the brand, however, recently it seems that Xbox is at a major crossroads.
The former president of Blizzard Mike Ybarra in a statement on Twitter says Microsoft Gaming CEO is hurting just as much as anyone else following the closure of three studios under Bethesda - Arkane Austin, Tango Gameworks, and Alpha Dog Studios. Roundhouse Games is also joining ZeniMax Online Studios.
Yeahhh I doubt it's hurting a millionaire as much as it's hurting fans and people who lost their jobs
At this moment, even Xbox fanboys are starting to hate Microsoft. It's fu**up, after fu**up, after fu**up... that's the state of Microsoft gaming.
Purchasing developers left and right, then killing them off...
Phil was the worst thing that happend to Xbox. Might as well just shut down their gaming division and fu** off
I'm sure he'll be upset that those cheques contain a small percentage of money MS is still making from the closed studios games too. Next time someone purchases High-fi Rush or Evil within all that money is now just Microsofts, just think the former devs at Tango who made Hi-fi Rush MS's most highly acclaimed game in years will get nothing more.
MS are buying these publishers for the big IP's like Elder Scrolls and Call of Duty they have little interest in the ones that don't make huge profits... and firing thousands and closing studios looks good on the next quarterly shareholder report. Gotta protect the share price.
This is all coming from the executive who thinks we should have the option to tip devs... apparently so publishers can pay devs minimum wage. Will someone think of the C-suite executives!!!
That was from a former Blizzard exec. Did Phil make a comment on that also?
edit: Oh, it wasn't Phil who said this himself.
Yeah, the guy making $10m a year is hurting as much as those who have lost their jobs and are worrying about their future and supporting their family. /s
It takes a real lack of shame to even try put the Good Guy Phil™ spin on this. It's not going to work this time.
He's sitting around feeling sorry when he should of been doing everything in his power to get people jobs in other studios you're telling me after toys for Bob split from Activision there wasn't a opening in the call of duty mines for arkane it's just woah is me.
Under his leadership, many have lost their jobs and fewer games have made it out the door.
people should call for his resignation, he has literally flushed xbox down the toilet.
another 3 studios closed today, thats it now, get out
Well purple101 you'd have to convince Observer and the other Xbox faithful that these studio closures and the fallout from the acquisitions is a bad thing and a sign of what's to come, and I don't think you're going to do that.
Nobody has managed that feat.
Obscure and Zeref have been summoned to the floor to give their account of these proceedings.
I 100% blame 'nice guy Phil' for the death of Xbox. The thing to realise is the Xbox Series S & X are performing WORST in console sales and game sales than the much criticised Xbox One - how can this be?
His two big mistakes were 1-not developing enough exclusives and 2 - always trying to beat PlayStation. If he made more exclusives over his decade reign and not tried to 'win' then classic Xbox would still be here in a profitable third place. Instead he tried a series of different projects to win and he ended up ultimately destroying Xbox by changing its relationship with its most loyal customers. What did he do?
* Phil spent a decade only release new iterations of Halo, Forza and Gears and not investing in creating new first party studios and IP. He mishandled Scalebound and shutdown Lionhead Studios.
* Phil tried Mixer, a streaming channel that could be used to promote Xbox dominance with free giveaways...
* Phil tried to create a streaming service that he regarded as too superior to consider PlayStation and Nintendo as competitors! But would instead compete with Netflix and Google...
* But his worst mistake was Xbox Game Pass - a multi billion dollar investment that could only work if completely dominated the worldwide gaming market - but it didn't. Instead it changed the culture of Xbox gamers so they resented spending on third party games as they were now trained to expect everything for free. Now all the games Microsoft had invested so much in were not only NOT making money from other platforms, as ever, but they were now NOT EVEN making money from Xbox customers.
If Phil Spencer had just concentrated on making new games and not non-stop gimmicks to beat PlayStation, I genuinely believe the Xbox would be an attractive platform with regular exclusives like Halo but with others too that would give it its distinct identity and maintain a profitable existence. Phil's been in charge for over a decade, the blame lays at his feet.
Oh you and I both know that's never gonna happen. Some people you can't convince them there is a fire even if their own hair is burning. Denial is a powerful thing.
Last MS financial results for FY24 Q2 which is the company's sales data through Dec. 31, 2023. According to the earnings, gaming revenue is up 49% year-over-year.
That doesn't sound like he flushing it down the toilet and that also makes very unlikely he loses his job any time soon.
Revenue up due to acquisition... Spending 10s of billions for new companies of course revenue is up. They don't tell us profits but they wouldn't be shutting down these divisions if they were in the black. Pretty sure they're shifting so radically because their current state has been an abject failure
This is 100% due to Activision Blizzard. If that deal had not gone through, Xbox revenue would be flat, which means a game like Starfield failed to move the needle.
@crazyCoconuts
While I agree that Phil and team have gone back on their word. Especially the last six years of promises.
But I disagree on your logic about the revenue.
They bought the companies to boost their gaming division revenue. In that regard they were very successful. They are owned by MS so your point is moot.
They made all that money and still doing studio shutdowns...
It's bottomless pit of money MS wants. There's no amount of money MS can make to save their own studios. They're doing it out greed and general incompetence. Calling Phil's head won't mean anything or do anything for MS. They'll still destroy regardless.
Damn idiots don't know how to read revenue reports. Revenue was due to folding in Activision Blizzard Revenue. They were up 61% due to Activision Blizzard with 62% increase. So they only went up 1% over last year. But idiots going to be idiots thinking Spencer is helping Xbox right now. Lol
It is funny that it was him finally touching Bethesda that was the straw that finally broke the camels back. They should have been calling for this years ago.
You obviously don't know what literally means but ya , all console bosses need to accept accountability for their actions.
So, Phil gets canned. Do people really think that the person to replace him won't kowtow to those above him? Like his replacement won't look at spreadsheets to find things to remove and ignore the human element and accomplishments behind those numbers?
No matter whether Phil is there or not, the problem isn't just Phil. It's the corporate culture and how they prioritize numbers over anything else. Stop acting like getting rid of Phil will get rid of the issue. It won't.
Phil needs to go. His time is over. When you oversee layoff after layoff after studio closure after studio closure, it's impossible to keep going forward and have people - employees and fans alike - trust you in any way.
Especially after HiFi Rush hit their metrics. I guess we know what to expect for Ninja Theory next once Hellblade is out, and Machine Games once Indiana's out & Todd Howard focuses back on ES6.
Ninja Theory won't last after HB2. Because it won't hit some impossible metric in order to be a success at MS.
Expect NT to be gone in a years time also. Where the hells the advertising for Hellblade 2? Another MS issue they do to themselves bunch of clowns.
Their first-announced Series game going out like this. Their marketing so far has just been a daily tweet or two the last week.
And now this will overshadow everything up till and through its release. Maybe Ninja Theory will get the same dignity as Tango and bow out with a better PS5 port.
Hellblade 2 out in 2 weeks and no one will even remember it by the beginning of June
Unrelated but since there's a shortage of devs to make Fallout content ... MS could've asked Tango or Austin or both to make a new Fallout game (doesn't have to be a full-blown RPG) ... fans would've gobbled it up after watching Prime's FO season 2 ... and it would've been a nice experiment to check the feasibility of having Fallout venture into non-RPG genres (like it was done before during Interplay days).
This is what I would've guessed/suggested from past statements from Xbox & co., that you can experiment with new ideas (using new or existing IPs) at current Xbox ecosystem.
But ... after axing Tango & Austin ... don't know if Xbox is still open to such experimentations.
Just watch Outer World's 2 also be dead on arrival without Playstation and Nintendo gamers buying that game you can expect Gamepass to kill that IP too. Ditto for making that contract to exclude Playstation gamers from getting Indiana Jones too. Remember how Tomb Raider sales were on Playstation after the 1 year exclusivity? Expect even worse for Indiana Jones too
It's not just Phil (Phil is just the dumb kid taking the money) and Kotaku is NOT the voice to listen to as shi7 sites like Kotaku helped contribute to modern gaming toxicity and disinformation. Kotaku staff = Much like Phil, and yes need to go.
MS has been posting record profits, you think they give a crap about games and gamers? Think again.
What a prat.
People gave him and Matt Booty the benefit of the doubt for a few years due to the mess they inherited but a decade on and all they've done is ruin gaming for everyone.
The only success they've had is MS Flight Simulator which was developed by a third party anyway - and Forza Horizon which by pure coincidence went downhill in quality the second Playground were acquired (imo) and that's all I can think of. Everything else they've touched has been ruined.
It's genuinely staggering how either of these two guys are still there.
Phil didnt even inherit a mess, he was equally responsible for it because he sat on the executive so the kinect and XBONE roadmap vision was also on him. Mattrick was the convenient public scapegoat back then but now theres no one to place the blame on.
If they're to keep anyone, I'd hope it would be Sarah Bond. She's at least consistent, constantly doing quick tweets with green emojis where she can, repping the brand, saying the next hardware will be the biggest leap ever (whatever that means).
Phil Spencer openly minimizes Xbox by going out of his way to congratulate competitors and talking about how great playing non-Xbox devices are; if only Xbox had someone that could even pretend to like Xbox for being Xbox.
This is the point I always found frustrating, the whitewashing of Spencers reputation when he got promoted. He was involved in the slide into mediocrity of the 360 generation!
The worse is yet to come and their fanbase don't know it yet, someone at MS posted and deleted a tweet saying all their main ''exclusives'' Halo, Forza, Gears etc will be heading to PS soon so grab a front seat ticket and some popcorn and enjoy the show;) The crying will be hilarious.
Yeah he is absolutely responsible for the abysmal state of Xbox. I can't tell Mattrick and Spencer apart at this point. Both have been horrible executives for the Xbox brand.
Phil's responsible for this generations mess. Phil was the one following orders under Steve Balmer and Don Mattrick.
Don even admitted he messed up on camera with the Xbox documentary
Let's keep the facts straight. Everything currently now is Phil's fault.
In an Interview with Game Rant, Neil Newbon discusses the performance choices he made portraying Baldur's Gate 3's Astarion, and why some decisions were risky.
They say in that interview with Phil that a new IP failing is bad for everyone because the decision makers will be more likely to only greenlight sequels because they are a safer bet.
Did they forget about Halo Infinite?
Phil isn’t the problem. MicroSoft is the problem. Sure he’s not a good spokesperson but their culture and team at Xbox is influenced by MS who wants to dominate industries.
Their vision for dominating stopped being console a long time ago and has turned into a cloud streaming service future that they want to dominate. To do this they want to buy as many 3rd party games as possible and more importantly to them the biggest casual games that sell best elsewhere.
That’s where they think they can steal customers for their cloud service future.
Games aren’t most important to MS or Xbox. It’s the domination of a particular industry first to sell you a sub second that’s on their servers (cloud) third and then the games. They don’t care what games they are as long as they are the best selling somewhere that casuals pump money into constantly and they will try to buy them.
I think it's combination of phil Microsoft and their team problems. You need freedom but order at certain points vice versa.
"It’s also convenient to claim success on the back of a new Gamepass service-based strategy when you are getting clobbered in the only ways the video game industry has measured success historically since its inception; console and video game sales. The moving of the goalposts seems all too convenient from a business standpoint, especially when you aren’t being entirely transparent with the data to back up those claims."
That's why it's senseless for media and fans to regurgitate talking points about Game Pass games being hits based on lacking data and MS' say so. It's amazing how many keep asserting that a GP title was a hit without bothering to inspect what that actually means.
If he actually manages to keep his job in the future, especially when the time comes to lead us into the next gen, I'll be surprised.