[Updated] Rumor: Phil Spencer would leave his position after launching the next generation of Xbox

According to new information, Phil Spencer's leadership around Xbox would put an end with the release of the next Xbox.

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Update

Original News

A new rumor has set off alarm bells around Xbox: Phil Spencer may be leaving his position as CEO of Microsoft Gaming after the launch of the next generation of Xbox consoles. According to reports on social media, Spencer is already working closely with Sarah Bond to ensure a smooth transition when he departs.

Although no official announcement has been made, the rumor suggests that Sarah Bond would take over as CEO of Microsoft Gaming, solidifying her role as a key figure in the company’s strategic reorganization. Bond has had an increasingly visible role in recent Xbox events and has led important business areas since her appointment as Xbox president in 2023.

A Planned Succession with Questions in the Air

For now, it’s unclear who would fill the position of Xbox president if Bond were to take over as CEO of Microsoft Gaming, although it’s possible that the company could restructure its internal divisions with new leaders for hardware, publishing, and services.

This rumor comes at a particularly delicate time for the brand: Microsoft has recently laid off thousands of employees in various areas, canceled several projects at Xbox Game Studios, and closed studios like The Initiative. Meanwhile, plans for a new generation of hardware are still on track, including a direct successor to the Xbox Series X.

Although this is unconfirmed information, Phil Spencer’s potential retirement would mark the end of an era. The executive took over the leadership of Xbox in 2014 and has been a central figure in the brand’s transformation, the push for Xbox Game Pass, and the acquisition of key studios like Bethesda and Activision Blizzard, among others.

EXCLUSIVE: Phil Spencer will be retiring from his role as CEO of Microsoft Gaming after the launch of the next generation Xbox.

Phil Spencer is working closely with Sarah Bond and her team to ensure a smooth transition for her take over as CEO of Microsoft Gaming once he… pic.twitter.com/LDqB4BW8ER

— Hope (@TheGhostOfHope) July 2, 2025