Phil Spencer Addresses Recent Studio Closures, Says He Has To Run Business

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"I Have To Make Hard Decisions"

Story Highlight
  • Several Xbox studios and hundreds of employees have been laid off from Xbox this year.
  • Phil Spencer has finally talked about this after yesterday’s showcase.
  • The head of Xbox states that he took no joy in closing Arkane or Tango Gameworks.

Recently, things have been hard for Phil Spencer, the head of Xbox, as he had to make some harsh decisions. Those decisions included massive layoffs and the closure of studios like Arkane Austin and Tango Gameworks.

The latter also seemed to be working on two new projects when this announcement was made, leaving fans angry and confused. Phil Spencer has finally discussed this decision recently.

According to the head of Xbox, these decisions were made to keep the business going.

Why it matters: Running a business requires compromises, and the one at the top often has to make harsh choices.

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In an interview with IGN’s Ryan McCaffrey, Phil Spencer discussed this situation in detail. He commented on the decisions of the hard choices he had to make this year. 

I have to run a sustainable business inside the company and grow. That means sometimes I have to make hard decisions.

-Phil Spencer

The Xbox boss also stated that he does not enjoy making such decisions. However, he believes that someone has to take the initiative and do what’s necessary to keep the business up and running.

It seems like Phil Spencer has a bit of regret about closing those studios and laying off so many people. However, as the head of Xbox, the responsibility lies on his shoulders at the end of the day.

YouTube video

He has also revealed the reason he hasn’t talked about this publicly.

The company focuses on the team and individuals. As he said, it has been hard for everyone. As a leader, Phil Spencer has to ensure that the company is doing the right thing for the team and the individuals.

He further stated that it’s not about his PR—it’s about Xbox PR. It seems like this has also taken a toll on him since Microsoft’s gaming division has been through a rough ride over the past six months.

Still, it is good to see that the Xbox boss was ready to talk about it, as this is the first time he addressed the layoffs. While there have been some hard times, the showcase last night was spectacular and the best one we have ever seen.

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