A rumor has surfaced that the Xbox boss will retire after Microsoft releases the next-generation Xbox console.

Phil Spencer, the current CEO of Microsoft’s gaming division, is rumored to retire after the release of the next-generation Xbox console. Sarah Bond, currently head of Microsoft’s Xbox, is rumored to take his place. The claim comes from TheGhostOfHope, a Twitter insider who has previously reported accurate Call of Duty news. Insider Gaming has also heard about Spencer’s imminent retirement several times this year and has somewhat confirmed the rumor. Spencer is 57 years old and has worked at Microsoft in various roles since 1988, joining the Xbox team in 2001. He took the helm of Xbox in 2014 and became CEO of Microsoft Gaming in 2022.

EXCLUSIVE: Phil Spencer will be retiring from his role as CEO of Microsoft Gaming after the launch of the next generation Xbox.

Phil Spencer is working closely with Sarah Bond and her team to ensure a smooth transition for her take over as CEO of Microsoft Gaming once he… pic.twitter.com/LDqB4BW8ER

— Hope (@TheGhostOfHope) July 2, 2025

He has climbed the career ladder as far as he can and is approaching retirement age. While it’s not the most surprising speculation, it’s not unexpected that this statement comes on a day when a huge downsizing was announced within Microsoft. We’ve summarized this in a big recap today. Spencer took over Xbox after Dom Mattrick left behind a huge mess when the Xbox One was announced. Spencer had to clean it up. He brought the platform back into the limelight for positive reasons with his support of Xbox Game Pass, a service that had long been considered the best gaming store. More recently, he secured the massive acquisitions of ZeniMax and Bethesda and then Activision Blizzard King. However, people will remember these acquisitions for the mass layoffs that followed. The question regarding Spencer’s retirement is when it will happen, not if.

Following TheGhostOfHope’s statement, Xbox’s head of communications, Kari Perez, confirmed to The Verge that Phil Spencer will not be retiring anytime soon. Head of Communications Frank Shaw also denied the rumors that Spencer is planning to appoint Xbox Chief Sarah Bond as his replacement. Windows Central claimed that sources said there are currently no plans for Spencer’s retirement.

so long as by “summed it up” you mean “made it up.”

— Frank X. Shaw (@fxshaw) July 2, 2025

While Spencer could stay in his position for another five years, it’s not far-fetched to speculate that the next major Xbox milestone, such as the launch of the next-gen Xbox, could be his last. Although Bond’s takeover plans and the exact timing of Spencer’s departure are not yet set in stone, it’s safe to say that his time at Microsoft is coming to an end.

Source: WCCFTech