Phil Spencer Discusses Xbox Studio Closures: Prioritizing a Sustainable Business Model

Phil Spencer, the head of Microsoft Gaming, has spoken out about the backlash surrounding Xbox's recent decision to close several studios, including Arkane Austin and Tango Gameworks. In an interview at IGN Live in Los Angeles, Spencer acknowledged the difficulty of the decision, but stressed that it was necessary to maintain a sustainable business. He expressed his commitment to supporting the affected teams and individuals through severance packages and other measures. Spencer's remarks echoed those of Xbox president Sarah Bond, who emphasized the importance of ensuring the long-term health of the business. The remaining staff at ZeniMax's studios are now covered by Microsoft's labor neutrality agreement, which requires the company to take a neutral stance on unionization. Spencer also touched on rumors of a potential Xbox handheld console, hinting at exciting developments in the company's hardware plans, but declined to provide further details.