290°

Microsoft's Phil Spencer on Xbox growth, recent job cuts and the future of games on discs

Plus: A brief chat with legendary Nintendo composer Koji Kondo

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MrDead76d ago

Anyone see Respawn devs comments left at Phil's recent Helldivers should be on Xbox tweet? "not exactly sure who it helps in the industry to acquire a company and then layoff 1900 of their developers Mr. Spencer"

Phil and MS, you suck

BeHunted76d ago ShowReplies(3)
purple10176d ago

Offffh that’s spicy
I like it

PapaBop76d ago

He's just welcoming them to the Xbox family.

gold_drake76d ago

love how he justifies the lay offs with "we need the right people".

its the usual talking-out-of-his-arse interview.

its also very odd that he never really acknowledges that xbox is tanking this hen again and only that "we found ways to get money from people" haha

my god haha

Asplundh76d ago

He says
"I need to make sure we have enough of the right people and the right number of people in the right places for us to succeed."

Which is funny because he clearly hasn't been the right person for his job for Xbox to succeed.

M3talDiamond76d ago (Edited 76d ago )

Whats with this buzzword "growth" ???

fr0sty76d ago

A concept Xbox has never been able to understand.

Barlos75d ago

They think growth is buying up every publisher and developer that they can.

badz14976d ago

Yea...like what growth? The Xbox Series consoles are already selling fewer units than the Xbone during the same period of its life and is already dropping fast. How does Phil see "growth"?

Name Last Name76d ago (Edited 76d ago )

Investors only care about business growth. So that they can sell at a profit from what they paid before.

NotoriousWhiz75d ago (Edited 75d ago )

And this is the problem. Endless growth is just not possible. There is always going to be a limit. Companies really should start caring more about profit and less about growth.

Inverno76d ago

It's a kinder way of saying "we will step on our employees", cause these companies don't grow they just like to look big.

+ Show (2) more repliesLast reply 75d ago
Nyxus76d ago (Edited 76d ago )

His comments on physical games don't inspire much confidence.

Also, he says Microsoft ships games physically and digitally, but both Hi-Fi Rush and Hellblade II are digital only.

-Foxtrot76d ago

The guy just can’t help contradicting himself

EvertonFC76d ago (Edited 76d ago )

He's just waiting until the end of the gen and let the next guy or gal take the 3rd party fall.
He will 100% step down and take the cheap way out and pretend he left not knowing there going full 3rd party.

crazyCoconuts76d ago

He says they support physical media but not disproportionately to what customers want. Man this dude won't answer straight.
So if customers are only buying digital they'll only support digital. He basically made zero commitments

Nyxus76d ago

The problem is they don't give players a choice when some first party games release digital only.

The_Hooligan75d ago

I support physical media 100%. And I call bs on studios that say it cost $20 to do physical packaging, so if that is true then all digital games should be $50 compared to $70 and if you are not selling it as such that means you are charging your customers more for one format than the other even though the product is the same.

purple10176d ago

“ But I will say our strategy does not hinge on people moving all-digital,” he said. “And getting rid of physical, that's not a strategic thing for us.”

Again, absolutely lying through his teeth.

badz14976d ago

Proceed to making Hellblade 2 - their most anticipated game for this gen, digital only. Classic Phil Spencer

Show all comments (44)
380°

It's Time To Stop Giving Xbox Boss Phil Spencer A Pass

Under his leadership, many have lost their jobs and fewer games have made it out the door.

purple1018h ago

people should call for his resignation, he has literally flushed xbox down the toilet.
another 3 studios closed today, thats it now, get out

Tody_ZA6h ago(Edited 6h ago)

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.

Redgrave6h ago

Obscure and Zeref have been summoned to the floor to give their account of these proceedings.

VenomUK6h ago

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.

amazinglover5h ago

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.

crazyCoconuts4h ago

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

Scissorman4h ago

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.

rlow13h ago

@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.

Tacoboto7h ago

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.

mastershredder7h ago

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.

Moegooner7h ago

MS has been posting record profits, you think they give a crap about games and gamers? Think again.

DOMination-7h ago

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.

Hofstaderman7h ago

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.

Tacoboto7h ago

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.

LoveSpuds7h ago

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!

Aloymetal6h ago

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.

Notellin5h ago

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.

+ Show (2) more repliesLast reply 3h ago
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90°

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80°

Hasbro's $1 billion bet on internal game development

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