Phil Spencer comments on recent Xbox layoffs and studio closures

Phil Spencer has now commented on Microsoft's studio closures, saying "right now is the time for us to focus on the team and the individuals."

Heidi Nicholas

Published 10 Jun 2024

Following the wave of Xbox and Game Pass news from the Xbox Games Showcase, Phil Spencer has now discussed the impact of layoffs and studio closures following Microsoft's decision to close multiple Bethesda studios, saying that "It's obviously a decision that's very hard on them, and I want to make sure through severance and other things that we're doing the right thing for the individuals on the team.

Phil Spencer on studio closures: "I have to run a sustainable business inside the company and grow"

"The closure of any team is hard obviously on the individuals there, hard on the team... I haven't been talking publicly about this, because right now is the time for us to focus on the team and the individuals. It's obviously a decision that's very hard on them, and I want to make sure through severance and other things that we're doing the right thing for the individuals on the team. It's not about my PR, it's not about Xbox PR. It's about those teams," Spencer says in an IGN interview.

In May, Microsoft announced it would be closing down Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Studios, while earlier in the year we heard how Microsoft was making mass layoffs with around 1,900 employees affected across Xbox Game Studios, Activision Blizzard, and ZeniMax Media.

"In the end, I've said over and over, I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make," Spencer continues. "We will continue to go forward. We will continue to invest in what we're trying to go do in Xbox and build the best business we can, which ensures we can continue to do shows like the one we just did."

Microsoft's layoffs have been met with criticism, partly due to the confusion they created — for instance, how nonsensical it seems that Tango Gameworks' closure was only the year after it launched a big success like Hi-Fi Rush. Hopefully we'll hear more of Xbox's future plans soon, but in the meantime, the rush of Xbox news also saw Phil Spencer confirming more Xbox games are coming to other platforms.

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Written by Heidi Nicholas

Heidi tends to lean towards indie games, RPGs, and open-world games on Xbox, and when not playing Disney Dreamlight Valley, happily installs every new wholesome game that appears on Xbox Game Pass, before diving back into favorites like The Witcher 3. She's looking forward to Age of Mythology Retold, Everwild, Fable, and Avowed on the Xbox horizon. Heidi graduated with an MA in English Literature before joining the TrueAchievements team.