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Why was Spencer pushed?

He wasn't pushed or forced out. As others have pointed out, he was talking to Satya about retiring last year. And he is staying in a consultant role through August. That doesn't generally happen when you are forced out.

I think Phil saw the writing on the wall, knew his time was done, and decided to retire. He may have moved his retirement date up to coincide with Satya's plans for the division, but he wasn't ejected.
 
I believe exactly what Microsoft is saying happened.

I also believe that multiple cameras in a maximum security prison can all go out at the same time because of a freak technical issue.

Questions are hard. I like easy.
 
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george bush GIF
 
My guess is Phil was pushed out, especially after last earning report came out. Sara Bond, probably was the next in line in terms of power, but since she lost her anchor - she had to leave.
Seen this type of power moves many times in my work... And these decisions sometimes happen overnight.
When a person follows wrong "line" of power - sometimes it means the entire branch of that "line" gets demoted or leave.
 
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Strange comparison. People take retirement at different ages and for different reasons.

Nadella has overseen a roughly 1000% increase in Microsoft's stock value since he took over, by the way.

You take his word with absolute truth?

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We all know what is really going on here. Taking account of Sarah Bond leaving out of nowhere, we can pretty much summarised what really happen.

Please feel free to swallow whatever Phil said.
 
Spencer retiring is not surprising. He's been at Microsoft since 1988, and was the Xbox boss and then Microsoft Gaming CEO for over a decade in total. Bond was obviously overlooked, I guess Nadella wanted someone who loves AI at Spencer's position.

For me this all means it's over. The old Xbox days are definitely over. Hryb is gone, Spencer's retiring. Is Greenberg still there? I still don't get why Booty is pushed up once again, but what do I know.
 
Pretty sure because he recently didn't had anything to say and other people made the decisions. I mean I am pretty sure he wanted to have exclusives and that is why he tried to soften the blow at the beginning by saying a handful of games. But it's clear that he was used only to defend the decisions other people made within Microsoft.
 
What's amazing is Spencer and Bond got away with wasting millions (if not billions) of dollars, didn't get fired, made millions upon millions of dollars, and probably still got a bonus at the end of the each year they were in their role.
 
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Personally, its the hail mary of cod in gamepass that barely changeed anything sealed the deal exit. Two cods are now gamepass launch title. There wont be a third.
 
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Investors have new toy
AI
He spent his budget in acquiring comptetitors to kill Sony
He failed
He tried to reduce developement cost - games under his direction are generally mid or trash
He failed again
He went third party to reduce acquisitions impact
He failed for the last time
Yep, that sounds about right.
 
Phil Spencer was kicked out because he managed the brand poorly as of late and Microsoft wants to pay tribute to the god of AI with a sacrifice.
 
He had nothing more to say really.
He obviously wasn't on board with what Nadella did to Xbox, he just had to execute a plan that wasn't his own while taking the heat at a PR level.
The latest financial results showing cracks in the COD machine they paid 70 billions probably accelerated things.

Nadella needed a new reliable person completely on board with his vision and AI focus for the future, showing enthusiasm for these ideas not reluctance.
Sarah Bond was basically completely in line with Spencer and probably not really appreciated by Nadella and when not chosen for the job she preferred to go away instead of getting humiliated.
 
MS CEO Nutella is Indian
Sir Phil Spencer is white
Sharma is Indian

It all makes sense now
 
Bond not leaving a farewell message might mean she was really fired without notice, which would be strange for such a high profile executive.
Given how every public speaking of hers somehow triggered flashbacks of 2013, I think it's one of those things MS gaming needed to do for self preservation.
 
He wasn't pushed or forced out. As others have pointed out, he was talking to Satya about retiring last year. And he is staying in a consultant role through August. That doesn't generally happen when you are forced out.

I think Phil saw the writing on the wall, knew his time was done, and decided to retire. He may have moved his retirement date up to coincide with Satya's plans for the division, but he wasn't ejected.
This makes sense to me. Bonus and evaluations are usually done around now. For someone at his position, the timing works. Also, we haven't really seen much of him in a long time. Guy made his money, time to focus on himself and his family. Going to be very interesting to watch the next Xbox launch. Most of the heavy decisions have already been made. New person comes in and needs to play it out. This isn't turn key stuff.
 
We all know Sarah Bond left because she was overlooked for the big job.

But what is the main reason that Spencer left? Something must have happened between him and Nadella for him to announce he is leaving randomly on a Monday. On 9/10 times, the CEO would give notice and leave a few months later. It's happened with nearly every big gaming CEO that I can remember. Even the disaster class that was Mattrick gave notice that he was leaving. Same with Bowser and Ryan in recent times.

I doubt Nadella cares that he messed up big franchises. Was it the poor performance from Activision? COD flopped compared to recent standards last year.

Kinda funny are saying Phil was pushed.
Dude...

Phil Spencer was given access to the 'Microsoft War chest' and he failed to utilize it to success.

I don't think people fully realize how much of a failure Spencer was. He was given close to one hundred billion dollars and he failed to use that money to save Xbox. Like... that's an F- performance.
 
A combination of Xbox probably not growing as fast as internal projections would have liked it to + the usual corporate backstabbing that upper management spends 90% of its time on. Sarah Bond was collateral since she was tied to Phil. It's nothing unusual, this shit happens a lot in big corporations. Especially very dysfunctional ones like Microsoft. Look at Microsoft's stack ranking system during the Bill Gates era and how long it took the company to realize how retarded that bullshit was.
 
Their next pivot is to a PC/Console hybrid with a huge SoC that was pushing the limits of acceptable price-point BEFORE the AI bubble launched the price of memory and storage chips into the stratosphere!

Also they were hoping to mitigate risk by allowing third parties to license and manufacture hardware, another thing the AI chip bubble is going to put in jeopardy!

And the worst part is, on a hardware front they really have no choice but to forge ahead with a new offer as they've let Series X/S rot for for the past 18 months, they can't even boost production because they've been leaning (pun intended) on JIT procurement for their production pipelines, so they'd need to eat bubble prices or jack up RRP's on their existing line-up.

Its beyond fucked.
 
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Unless you are in the UK the email literally says he is staying on as an Advisor/Consultant through the summer.
Have you seen what a leaving CEO does when they are staying on as an advisor/consultant?

They respond to emails, take calls, help resolve issues that may arise that only they have a better history/knowledge of and provide guidance when needed. Primarily, they are on stand by and getting paid for it. Nobody reports to them at that point and they have zero authority on anything.

Every departing CEO will usually take this up, as it's essentially free money for barely any work, unless there is some burning emergency. It has nothing to do with the nature of their departure. They are all professionals after all. Something absolutely egregious needs to transpire for them to just leave without facilitating a transition, which clearly isn't the case here. But beyond that, we have no idea except what insiders or journalists may hear through the grapevine. Even if his retirement was on the cards for a while, the timing and pace at which it is being done is unusual. He could have chosen to retire, forced to retire, or anything in between. So if there are multiple people potentially in the know claiming one thing, it's worth considering.
 
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Because Satya wanted to take the Xbox division in a different direction. He trusted Phil with an 80 billion "vision" that did not materialize. He knows that Phil failed in his task.

Satya is also all-in on AI, and he wants to move hard in that direction. He knew Phil wasn't going to be the guy to spearhead something like that.

They are also under pressure from stockholders and Amy Hood to get that profit margin up. Phil has been ineffective at that.

In a nutshell, I think that's why he was pushed out early. Satya knew Phil had failed, wanted to move toward AI and big profits, and he knew Phil wasn't the guy for the job. He also knew Phil was on his way out anyway (had been talking retirement), so why not give him a little shove.
 
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Bad vision, terrible performance, low to non-existent growth in his sector - take your pick.

Xbox hasnt exactly thrived the last 10 years :messenger_expressionless:
 
He wasn't pushed or forced out. As others have pointed out, he was talking to Satya about retiring last year. And he is staying in a consultant role through August. That doesn't generally happen when you are forced out.
No, he said some months ago that didn't plan to retine anytime soon, but now a Friday says that on Monday will be out (but will continue as consultant until Summer):
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Because Satya wanted to take the Xbox division in a different direction. He trusted Phil with an 80 billion "vision" that did not materialize. He knows that Phil failed in his task.
There were many more acquisitions since Minecraft, they may have spent almost $100B since then. Plus on top of that, the gaming division had billions of loses every generation, particularly during the "day one on GP" times.

Satya very likely wanted to kill the MS made Xbox hardware, focus on full exclusive and to stop giving away MS AAA games day one on GP to turn their gaming division into a profitable business, and also to increas the AI and cloud usage in the division where possible.

Phil very likely didn't want to implement these things and to be remembered as the one who killed the Xbox consoles. So Nutella replaced him with a shawarma that doesn't care about Xbox hardware, exclusivities or gamepass but knows about scaling digital business and particularly AI.
 
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Phil gambled on a future where no gamer would own any games and every gamer on the planet would give him 10 bucks a month in exchange for a plethora of games.

What Phil underestimated was that a good percentage of gamers were still collectors at heart. They still like to feel they own their games, even digitally. Also the GamePass mentality is the Fast Food of gaming. Play something for two hours, get your fix, drop the game, pick another one, play 2-3 hours, rinse and repeat. Which caused MicroSoft to value quantity over quality. Which is again - opposed to core gamer values.

My biggest problem with Game Pass was and is my problem with Netflix: Third party 'products' are temporarily available and can be taken down at any time, which forces me to game on Game Pass' time, not mine.

And that's a 'hell naw' from me.
I've also found far more value in waiting for sales. I just bought Black Ops 6 for $28 on Steam, which is cheaper than 1 month of GPU. I buy many games for less than $30. I will pay for games I am super excited for, just because I want to support developers.
 
I find it quite fascinating that it took so long to "fire" someone who consistently came in third and desperately chased the competition. The only thing I would truly consider a success was the Xbox 360 era, and even then, the hardware quality was abysmal thanks to ROD.
 
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No, he said some months ago that didn't plan to retine anytime soon, but now a Friday says that on Monday will be out (but will continue as consultant until Summer):
[....]


But Execs don't announce their retirement before they want to. Before they want to announce it, they will of course deny that they are retiring -- because of public perception, and because they don't want to be "outed" by a nosy journalist, and mostly because they want to preserve their freedom to choose their exit date (which Phil didn't actually do, heh, but never mind that).

To believe that Phil wasn't considering retirement, you have to ignore too many factors -- lots of rumors to that effect, his own statements that he talked to Satya about it late last year, the dismal results of his tenure at Xbox, Satya taking over the reigns, the embarrassing shift to multiplats, and the death of his Vision. It doesn't make sense (to me) to ignore all that, brush it all aside in favor of one press release.

Phil was nothing if not a PR guy. We've seen how often what he said turned out to be bullshit.

There were many more acquisitions since Minecraft, they may have spent almost $100B since then. Plus on top of that, the gaming division had billions of loses every generation, particularly during the "day one on GP" times.

True.

Satya very likely wanted to kill the MS made Xbox hardware, focus on full exclusive and to stop giving away MS AAA games day one on GP to turn their gaming division into a profitable business, and also to increas the AI and cloud usage in the division where possible.

I don't think Satya wanted to focus on exclusives. Satya was part of the push behind making everything mutliplat. As you say, he's all about profit, and you can't get profit if you only publish on Xbox.

Agree about the AI push. Not sure about hardware.
 
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I wouldn't take that at face value. Execs don't announce their retirement before they want to. Before they want to announce it, they will of course deny that they are retiring -- because of public perception, because they don't want to be "outed" by a nosy journalist, and mostly because they want to preserve their freedom to choose their exit date (which Phil didn't actually do, but never mind that).

To believe that Phil wasn't considering retirement, you have to ignore too many factors, including his own statements to the contrary, the crashingly poor results of his tenure at Xbox, Satya taking over the reigns, shift to multiplats, the death of his Vision, etc. It just doesn't make sense to ignore all that, simply because of some press release. Phil was nothing if not a PR guy.
If he would have been planning retirement wouldn't have said that sentence, plain and simple. Would have dodged the question with some PR twist or ambiguity or would have asked to don't include it in the article instead.

Because having said so now it's clear than a few months ago he didn't plan to retire. Which means he has been fired or that Satya imposed him something that made him think it's better to retire now than to wait 2 or 3 years.
 
If he would have been planning retirement wouldn't have said that sentence, plain and simple. Would have dodged the question with some PR twist or ambiguity or would have asked to don't include it in the article instead.

Because having said so now it's clear than a few months ago he didn't plan to retire. Which means he has been fired or that Satya imposed him something that made him think it's better to retire now than to wait 2 or 3 years.

Ok, you're free to believe what you like, of course. It just doesn't stack up to me. As I said, you have to ignore way too many factors on the other side of the equation, including Phil's own statements to the contrary.

I do think Satya forced him to retire earlier than he planned. Phil was probably aiming to retire in a year or two, but Satya forcefully moved the retirement date up for him. :)
 
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He had nothing more to say really.
He obviously wasn't on board with what Nadella did to Xbox, he just had to execute a plan that wasn't his own while taking the heat at a PR level.
The latest financial results showing cracks in the COD machine they paid 70 billions probably accelerated things.

Nadella needed a new reliable person completely on board with his vision and AI focus for the future, showing enthusiasm for these ideas not reluctance.
Sarah Bond was basically completely in line with Spencer and probably not really appreciated by Nadella and when not chosen for the job she preferred to go away instead of getting humiliated.
agreed. either Xbox as 3rd-party developer/publisher of relatively cheap ai-created games, or selling off & bailing on the whole 'game' thing...
 
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I'm gona miss him just like I miss House, Tretton, Reggie , Kutaragi, Moore and heck even Layden 💔

No heart for Mattrick. He can forever piss off.
 
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Probably bc gamepass as an economic model isn't working. They spent a fortune buying studios and those studios games barely sell on xbox. But it's going to be hard to go back to a more profitable model of no day one releases on gamepass. But that's what they need to do. Just mirror sony, have a catalogue of games for a subscription fee that's older games, but keep day 1 releases off the service for a year. And then keep those exclusives exclusive to xbox. If the only way people can play fallout 5 is on an xbox or PC, xbox's will sell.
 
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