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.

[purple101]

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

[RNTody]

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.

[Redgrave]

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

[VenomUK]

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.

[ChiefofLoliPolice]

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.

[amazinglover]

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.

[crazyCoconuts]

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

[Scissorman]

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.

[rlow1]

@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.

[Lightning77]

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.

[Chevalier]

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

[Markusb33]

this is due to Activision and not their general output of quality titles,

[amazinglover]

@Chevalier of course thats due to Activision Blizzard GUESS WHO OWNS THEM? It doesn't matter what that was due to its still growth for that division.

[Jingsing]

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.

[Kornholic]

Literally?

[Markusb33]

im sure this is good for gamers, didnt Phil say that about scalebound ?

[JackBNimble]

You obviously don't know what literally means but ya , all console bosses need to accept accountability for their actions.

[Christopher]

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.

[lodossrage]

See, what you said right there is the same EXACT point I made the day he replaced Don Mattrick.

I'm not saying Mattrick was great or anything. But he was part of the corporate structure, just like Phil Spencer. He was the fall guy even though Spencer was part of the bad decisions as well.

It's how MS is run and their structure that's the real issue. It didn't help that other CEO's across the industry said things like "they finally have the right people in place" when Phil took over (like John Riccitiello).

But don't worry, we all know that some people believe what they want, so when Phil leaves,, gets fired, or steps down, everyone will act like things are going to change (as usual).

[Tacoboto]

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.

[Lightning77]

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.

[Tacoboto]

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.

[Chevalier]

Hellblade 2 out in 2 weeks and no one will even remember it by the beginning of June

[RaidenBlack]

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.

[Chevalier]

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

[mastershredder]

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.

[Moegooner]

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

[Demetrius]

Ikr sad

[DOMination-]

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.

[Hofstaderman]

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.

[Tacoboto]

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.

[LoveSpuds]

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!

[Aloymetal]

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.

[Notellin]

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.

[anast]

@Aloy

Popcorn ready

[Lightning77]

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.

[ocelot07]

Been saying this for years. He did good patching up the stinking ship. Then set sail again for a short period then shot a massive hole in the shop once more and it's now sinking faster than before.

[DrDoomer]

bro is an absolute menace.

[Chocoburger]

Sony and Nintendo appreciate his 'hard work', though. They don't want to see him fired!

[z2g]

Lmao I don’t seem to remember him ever catching a break.

[Chevalier]

Yeah it's not like he can catch a break like having a parent company that can purchase over $80 billion in studios right? Oh wait.

[Zeref]

He gets no more passes from me. You don't get to take this long to get on track with Xbox exclusive games (buying ABK, Bethesda) and then immediately create confusion around exclusives and at the same time close down some great studios. I don't think anyone would bat an eye if it was Roundhouse and that other one. I think everyone understands those closing down.

But Arkane Austin AND Tango?? What are we doing here?

[Chevalier]

Well Xbox fans wanted to pretend there were no problems with Gamepass and no one buying games right? You guys were openly cheering for this consolidation too. So you guys didn't want to ask for better and this is what you get.

Remember taking about how good those engagement numbers were?! So good studios are shutting their doors to get you guys those sure hits in COD, Forza etc. Expect less new IPs too.

Congrats Xbox fans 👏 you didn't ask for more so now more mediocrity on the way. Xbox fans like you guys are the biggest part of their problems.

[Zeref]

This doesn't mean there are problems with GamePass lol. You're acting like the developers don't have a salary. We know they get bonuses when they make successful games as well.
But these studios would have likely closed regardless of whether or not they were bought by Microsoft, idk if you've noticed but Microsoft isn't the only one doing layoffs and closing studios. My issue is that they didn't NEED to close. Microsoft makes enough money for these studios to try again. GamePass has nothing to do with it.

[badz149]

Remember when they boasted about Hi-Fi rush being a huge success and how it was the best-selling games on Steam for awhile? just a year later, SHUT DOWN!

[Chevalier]

"GamePass has nothing to do with it."

Gamepass has a huge thing to do with it. 3 years of missed targets with high overhead cost and lost 3rd party sales and now also lost 1st party sales suggest otherwise.

Xbox own reports showed steep drops in 3rd party sales and now we can add 1st party as well. These games ended up on Playstation and Nintendo because no one on Xbox bought them.

You think it's some coincidence that Xbox announced they would stop announcing updates to their subscription numbers?! Seems oddly reminiscent when Xbox stopped announcing Xbox One numbers because they were terrible. Now Series X is trailing behind the Xbox One AND no subscription updates?

Sorry if you don't see the connection you either have your head in the sand or an absolute idiot.

[M3talDiamond]

The thing I dont like is the way he is moving Xbox to a streaming only service which I fear will inevitably result in a rental only future for Xbox Games I own an Xbox Series X and I still want the right to own my games rather than rent them. I have no problem with streaming and subscriptions as long as it is an option and we still have the choice to buying a game once and keeping it forever as opposed to paying endless subscription fees to play our favorite games.

[Jingsing]

That has basically been the plan all along. Quite frankly people in the gaming press have been cheering this along as most of them don't care about games or consumer rights, gaming journalism is just a short bridge for them to move onto something better.

[RNTody]

Why? He turns Microsoft a profit and Xbox fans get all their "value" out of games pass while contributing nothing to the success and growth of developers, just like MS.

Win for corporates, lose for everybody else, which is what Microsoft is all about isn't it?

I'd say judging by the metrics Xbox and the fanbase has been supporting since the end of the 360 era, Phil is a winner. /s

Oh, and right now they're developing the world's most powerful console for those "AAAA" titles they got in the works, because MS hasn't figured out what we all did three generations ago...that power doesn't win in the console space. Historically has never done so.

[SPEAKxTHExTRUTH]

I won’t pretend to know how to run a multi billion dollar business but what I do know is what I want as a gamer with decades of experience gaming. Phil like ALL suits only care for our money. I think Phil’s plan was always to turn Xbox basically 3rd party and for that he needs to go. I don’t want Sony being the ONLY serious console maker on the market. I enjoy making companies fight for my money. Xbox has no idea what gamers really want and I blame the head of the snake for that and I say remove the head…

[crazyCoconuts]

I'm hoping Steam can make a play to compete with a Steam Box. Slim chance but I can dream...

[Skuletor]

You can make your own one, with a little bit of research.
I can (and have) set my PC to launch with Steam Big Picture Mode, connecting a wireless controller gives the "console experience", plus you can plug your PC into your TV with an HDMI cable, just like a regular console too.

[Jingsing]

Valve hasn't been a very good platform holder, how much of their vast wealth have to they put back into giving PC users Valve developed AAA games? Rather than just misplaced vanity projects.

[Aloymetal]

No, not yet, Phil and Co. work is almost done but not complete yet. Phil needs to stay for at least another 2 years...You can do it Phil!!

[Falloutxii]

BuT bUt GaMePaSs Is ThE sAvIoR!!

[WelkinCole]

He is doing what the big heads at MS wants him to do so no he will not leave. Congrats xbox fans. You guys got what you wanted.

[Chocoburger]

Couldn't the same have been said about Mattrick? He did what his bosses wanted him to do? Yet he was given the boot.

Its more likely that the MS executives don't know who to replace him with, that's the only reason this failure still has his job.

[WelkinCole]

Yes but with Don if MS kept him the xbox would be dead right now. They had no choice but to remove him.

Phil didn't have the same baggage but anyone that listen closely knew it was just all sweet talk but really its the same thing minus no second hand resell.

[Futureshark]

I think the massive supply of Xbox Copium is finally running out.

The player base goodwill has been seriously dented by these closures.

I'm incredibly surprised at the closure of Tango, when so many times we've heard Phil go on about how important the Japanese game industry is.
And then they go and shutter they're only one!!!

Actually, regarding Spencer, Booty etc all, I'm actually not that surprised at all. They are, as usual, full of sh1t.

[Chocoburger]

Its hard for companies out side of Japan to purchase a Japanese company. MS had ONE Japanese studio that made good games, and in their infinite wisdom shut it down. Idiotic behavior if I've ever seen it. Now it'll be extremely difficult to get anymore Japanese talent, especially when they can look back and remember how Tango was treated.

At this point, only an ignorant moron would want to sell their company to Microsoft, do it only if you want to see your company crumble I suppose.

[Eonjay]

They are just making it even harder for devs and gamers in Japan to support them.

[derek]

Media and Microsoft were the ones during xbox purchase of Bethesda and ABK claiming it would secure people's jobs. Alot of xbox gamers argued this position hard even that dopey USA union said so. Should be a lesson to all that these larger acquisitions/mergers always result in job losses no matter what the propagandists say. Phillip Spencer is just the face of the corporation who employs him, his phony good guy image was always a lie.

[HyperMoused]

People should maybe start seeing millionaire company people as they are....drones who care about profit not gaming.

[ZwVw]

Never liked the guy and saw right through his nice guy facade from day one.
Guy goes on & on about wanting to expand the Xbox's Japanese 1st party portfolio and build good will within the Japanese gaming spectrum. Yet, kills off Scalebound and shutters the one Japanese studio they had under their umbrella after Hi-Fi Rush became a hit.

I'll take a Don Mattrick over a Phil Spencer any day of the week. Say what you will about him but at least Mattrick saw the value in 1st studios (i.e. Twisted Pixel, Press Play) and ips.

[Chocoburger]

Never forget Scalebound.
Never forget that Spencer claimed canceling Scalebound "would be good for Xbox."
Let's think back since that cancellation happened. Xbox has been in the toilet since then. Yeah, Philly, its been real 'good'.

[Skuletor]

I wonder if they regretted cancelling Scalebound, after seeing how successful PlatinumGames' Nier: Automata was, later the same year.

[BillyCrystals]

I like Phil for putting Xbox exclusives on PC day 1 and removing any need to ever buy an Xbox again. Now if only Xbox had good exclusives. We should let them cook though, they've only had a little over a decade.

[Crows90]

I stopped halfway through the Xbox one generation. I was all on board with his words...till I realized they didn't hold any weight.

[Skuletor]

How many "wait 'til E3"s was that?

[Crows90]

3 or 4 I believe. I'm not proud of it. But I did give them a ln honest chance.

[Skuletor]

@Crows90
It's understandable, if you've invested hundreds, if not thousands of dollars into an ecosystem, you'd want to give it the benefit of the doubt.

[The-VG-shamman]

Lol I’m beginning to think all these comments are manufactured opposition. How was this the tipping point? Lol the moment these independent company’s were bought you skally wags should’ve had this same energy, but instead you all praised it as some kind of gain for all. These companies had total creative freedom. Don’t forget how more than half of you wanted this deal to go through, now that half is defenseless i hope the other half can simply admit this was meant to happen from the start. Complete control of the market and producers from the head on the consoles themselves. Complete control over all of your games and franchises.

[The-VG-shamman]

Now put on your fanboy caps and let’s keep the console wars alive!!(jk) Lol

[anast]

They waited 20 years to say this.

[Aloymetal]

Lol, these ''journos'' will change their minds really quick after the next Phil interview...

[anast]

True. They'll lick those boots in seconds.

[romulus23]

Phil Spencer, seen here after receiving news his executive bonus will be increased by 20% after shuttering Arkane Austin and Tango Gameworks.

[PhillyDonJawn]

He use to be my hero, now I can't look at the guy

[maelstromb]

The guy is no different than any other corporate schill making millions on the backs of the true talent, the game devs. Today is the day I walk away from Xbox as a brand and I won't be back. They have disgraced themselves and they've cast a pall over the industry. #boycottxbox #boycottMS

[ApocalypseShadow]

Been saying it for years how shitty the company was and that Phil was just a smiley face to hide their intentions. They don't care about games and they don't care about the industry. Only that games support their services. Either paying for online or game pass or whatever that's an annual fee.

We told you guys about consolidation and that them buying those developers would cost dearly and hurt everyone else that's a gamer. Said it for YEARS. Years. They have more money than what they know what to do with. But don't make games at the same level as Nintendo or Sony. And main thing was to take away games or profit off of their competitors. This is why we have said that Microsoft needs to go if they aren't going to add to the industry in a positive way. We told you.

Phil is a facade. He's the same suit wearing lier as the rest of their executives. How many times did we have to explain this? It wasn't fanboyism. It was telling it straight from the hip that Microsoft and Phil aren't good for gamers. Now people are jobless after all those billions spent and consolidation that did nothing for nobody. We told you this. And as I always said, they don't care about the Japanese gamers either. And they just killed their only Japanese developer. That happened to make a good game. It tells you right there how Microsoft are.

And... If you see from the other side, Nintendo and Sony always change top executives. But those companies continue the plan of making great games and helping third parties and indie developers grow. Even in those changes, Nintendo and Sony still do well and profit after regime change. While Microsoft continues to fail and be last with the same guy at the top.

[Terry_B]

It was time for that like 6 years ago already.

[OWCY]

Who is giving him a free pass? Come on n4g and he is the most hated and mentioned person on here

[Cockney]

He's also the most defended person on here, right there is your free pass

[Zenzuu]

"Powa of Da Cloud" - Nothing came out of that

"World's most powerful console. 12 teraflops of Power" - PS5 Basically trades blows with it on multiplatform games and kills it with their first party games

"We're focusing on building world class 1st party studios" - Yeah, I guess by his definition is forking out money and buying studios.

"Xbox top selling console" - When they're selling well

"Hardware sales numbers are not important" - He downplays the importance of hardware numbers when they're not selling well.

The amount of PR and damage control and excuses is laughable. Phil would definitely be suited to join the team at Apple.

[gold_drake]

been saying this for a while now.

i really dont know how he has a job still.

[ocelot07]

I'm starting to believe he is just a face. Someone else pulls the stings behind the scenes he simply just puts the message out.

[Barlos]

Never did, never will.

[jwillj2k4]

Use your wallets to voice your opinions.

[Chocoburger]

The gamer community is doing that, the Xbox brand has been sinking year on year.

[RiseNShine]

Agreed, they're burning studios like there's no tomorrow but then waste billions in purchasing a ton of franchises they will never use, just like they did with Rare and many others, it's ridiculous.

[Firebird360]

His only accomplishment has been backwards compatibility.
And I think that bore more out of desperation than anything else, because at the time it was the only thing generating buzz around xbox.
Gamepass in my opinion devalues games as a whole. Its more of a pushing of AAA full price games into a gaas pay as you go model of mobile gaming.
Everyone says "its free on gp" , gp isn't free you're forever tied into that model once you start.
And thats what ms wants, you to own nothing and be forever subscribed to gp.
Xbox in the 360 era did so much right. With the announcement of x1 its been nothing but stumble after failed promise.
How you can manage to own so many high quality dev teams but still release so little, and when something does release its very underwhelming.

[Rikimaru-00]

He might lose his job if NT have to close there doors.

[Rimeskeem]

I doubt Phil will be removed. Right now investors care about AI and making the most money possible. If that means laying off people and closing studios then do it for them.

[TheCaptainKuchiki]

I've been sayong this for years. I don't understand why Xbox fans find him great when he's the sole reason Xbox has been slowly dying for over a decade now.

[Tankbusta40]

They should have called for this 10 years ago. Phil has been terrible...his only saving grace was he didn't roll out the Kinect

[ChiefofLoliPolice]

No shit. How long have we been saying this shit?

[Father__Merrin]

Xbox under matrik was miles better. The xbox one launch was fumbled I know but overall xbox was an amazing console to own

[Kinza55012]

It's about time, really! A pro consumer dude they say LMAO!

[jznrpg]

That time was before Gamepass was a thing. Now the damage is done to the gaming industry

[IRetrouk]

Only been saying this since crackdown 3🤷🏻‍♂️

[chronoforce]

Just give Phil another 100 billion, he'll make things right.

[_Decadent_Descent]

Stop giving him a . . . game pass? Ba dum tshh!

[Sonic1881]

I'm waiting for Obscure_Observer to try and defend him 😂

[purple101]

May, he’ll will just make his 67th account, and reply as someone else, Shure as eggs are eggs ?

[KeyAppearance]

Him and a lot of other suits, this issue is severely ingrained into game dev culture. If one of them go, promise you, someone worse is gonna come along and things will be back at step 1

They are just faces for the shareholders

[Psychonaut85]

But he and Todd wear leather jackets a lot, that means they’re just like us right? RIGHT?!

[Ninver]

I didn't think it was possible for anyone to top Don Mattricks level of incompetence. Guess is was wrong.