Brotaku

Phil Spencer, head of Microsoft Gaming, has revealed that the recent round of layoffs at the company was a result of a lack of growth at Xbox as well as the need to make the division profitable. Spencer also went on to speak about how there is a lack of growth across the industry and that publically traded companies are expected to show growth all the time.

This is also one of the major factors that led Microsoft to begin launching its first-party titles on other platforms like PlayStation and Switch. Spencer says that the industry is expected to drop in both revenue and playercount again this year which is why he wants to make sure fans can play games wherever they want to.

This contradicts Spencer’s earlier comments on the layoffs as he previously stated that the layoffs were brought about as Xbox “identified areas of overlap” and was positioning itself to bring about growth in the company.