Microsoft says today’s Xbox shake-up doesn’t mean game studio layoffs
The Verge
February 20, 2026
AI-Generated Deep Dive Summary
Xbox has announced new leadership changes, with Phil Spencer and Sarah Bond stepping down, but Microsoft has clarified that these shifts do not signal any immediate layoffs or studio closures. In a memo addressed to employees, Matt Booty, Executive Vice President of Gaming at Microsoft, emphasized that there are no organizational changes underway for Xbox’s game studios. This assurance comes amid industry speculation fueled by recent events, such as Sony laying off a beloved developer, which has led to concerns about potential instability in the gaming sector.
The leadership changes at Xbox are part of a broader restructuring within Microsoft’s gaming division. While Spencer and Bond’s exits may raise eyebrows, especially given the timing, Booty’s message aims to quell fears. He reiterated that the company remains committed to its current slate of franchises and studios, signaling a focus on long-term growth rather than short-term cuts. This approach aligns with Microsoft’s strategy to maintain continuity in its gaming operations despite leadership transitions.
The importance of this announcement lies in its implications for both the gaming industry and fans. By addressing concerns directly, Microsoft is sending a clear message about its priorities: stability, innovation, and the preservation
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Originally published on The Verge on 2/20/2026