Phil Spencer: “Xbox’s Main Goal Is to Protect Teams That Take Risks and Create New Things — Even If We Don’t Always Succeed”

Head of Microsoft Gaming Phil Spencer spoke at the Paley International Council Summit, where he emphasized that Xbox’s top priority remains supporting and protecting creative studios willing to take risks.

Spencer appeared alongside Tim Schafer, founder of Double Fine Productions, which has released Psychonauts 2 and the experimental Keeper since joining Microsoft in 2019. Schafer noted that the corporation genuinely maintains a culture of independence, allowing developers to create “weird and bold projects.”

However, Spencer’s words contrast sharply with Microsoft’s recent mass layoffs and studio closures — including the shutdown of Tango Gameworks, creators of Hi-Fi Rush, a title Spencer himself once praised as a perfect example of creative risk-taking.

The gap between Xbox’s public messaging and internal actions remains a sore point for the industry: while the company talks about protecting creativity, behind the scenes it continues tightening financial goals and cutting the very people making those “risky” games.

Earlier, Xbox president Sarah Bond stated that exclusivity is “a relic of the past.”