By Jordan Novet
Publication Date: 2026-02-20 20:30:00
Phil Spencer, CEO of Microsoft Gaming, appears at the Political Opening of the Gamescom conference in Cologne, Germany, on Aug. 23, 2023.
Franziska Krug | German Select | Getty Images
Microsoft’s head of gaming, Phil Spencer, is leaving the software maker following a 38-year tenure, as the company faces increased challenges in its Xbox business.
“Last year, Phil Spencer made the decision to retire from the company, and since then we’ve been talking about succession planning,” Microsoft CEO Satya Nadella wrote in a memo to employees that was published on Friday. “I want to thank Phil for his extraordinary leadership and partnership.”
Revenue from video games declined about 10% in the December quarter from a year earlier, a steeper drop than the company expected, while total revenue grew nearly 17%. Microsoft announced an unspecified impairment charge in its gaming business in January.
The company made a $75 billion bet to expand its games business with the 2023 acquisition of…
