Reporter Shannon Liao said in her weekly Substack industry newsletter that Spencer tried to calm staff down during a recent meeting.

“The company held an internal townhall where Spencer told employees that there were no plans to stop making consoles, and that Xboxes would continue to be part of a strategy that involves multiple kinds of devices,” Liao reported. Microsoft has not said anything yet.

Liao’s report has come at a time of worry for the Xbox brand, with various articles saying recent first-party games are going to other platforms and Microsoft is ready to bin physical media for good. Some have even wondered whether Microsoft will leave the console business, but Liao’s report suggests Xbox is here to stay, at least for now.

Last year’s Xbox v FTC trial leak showed Microsoft’s plan to release a mid-generation Xbox Series console refresh in 2024 as well as a hybrid next-gen Xbox set for 2028. At the time, Spencer said those plans were old news.

However, Spencer is due to host a "business update event" sometime this week. "We're listening and we hear you," Spencer wrote on his X/Twitter account. "We've been planning a business update event for next week, where we look forward to sharing more details with you about our vision for the future of Xbox. Stay tuned."

Last month, Microsoft confirmed plans to axe 1,900 staff from its video game workforce. Staff were sacked from across Xbox, the recently bought Activision Blizzard, as well as Bethesda owner ZeniMax.