After cutting 2,500 jobs in under one year, Phil Spencer says he feels good about the industry and that "the Xbox business has never been more healthy"

Microsoft acquired Activision Blizzard King in October, 2023, and since then, around 2,500 people have been laid off from the company's gaming division. Despite this, Xbox boss Phil Spencer says "the Xbox business has never been more healthy".

In an interview with Bloomberg published yesterday, November 12, 2024, Spencer cites growth in cloud gaming and console usage for why he thinks Xbox is doing well at the moment. "The business is performing right now, and I think that means a more healthy future for hardware and the games we build," he says.

The most recent Xbox layoffs were in September, shortly after which it was announced Microsoft shareholders were set to get an increase in their dividend payout starting this month – 10% extra, netting 83 cents per share rather than 75 cents. CEO Satya Nadella is also getting a 62% increase to his compensation for his role.

"I feel pretty good about where this industry is going," Spencer says. "To reach new players, we need to be creative and adaptive of new business models, new devices, new ways of access. We’re not going to grow the market with $1,000 consoles."

So far in 2024 alone, over 13,000 people have been laid off in the video game industry. In 2023, 10,000 people lost their jobs.

Xbox fans at least have had some fun recently with the arrival of Death Stranding Director's Cut to the console, and there's Indiana Jones and the Great Circle to look forward to. Elsewhere in his recent interview, Spencer discussed the likelihood of new cross platform releases like those, suggesting that there were no "red lines" blocking any individual Microsoft game from ending up on PS5.

In the meantime, if you want to remember the glory days, have a look at our list of the best xbox games you can play right now.