About Phil Spencer
Phil Spencer, CEO of Microsoft Gaming, has stated that the company's primary use of AI within Xbox is for platform moderation, such as identifying and filtering offensive or spam-related content. He noted that AI is not currently used in the creative aspects of game development, saying he leaves those decisions to individual teams. Spencer also suggested AI could potentially be used in the future for game discovery and curation, acting as a personalized recommendation engine.
Spencer has discussed the future of Xbox hardware, indicating that the company is working on new form factors, including a handheld device, and emphasized the importance of being able to play games locally. He stated that Xbox games will continue to appear on more platforms, including PlayStation and Nintendo Switch, saying the company wants its games to be available where people play. Spencer described this strategy as putting games first and not putting up walls around where people can engage with Xbox, while also affirming that dedicated Xbox hardware remains a fundamental part of the brand.
Source: AI-verified profile updated from Phil Spencer's recent appearances.
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✨ AI-enhanced transcript with speaker attribution
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Host0:00
You've been waiting for it to end. A lot of people waiting for it to end. The drama surrounding Xbox Activision Blizzard King has finally come to an end. It is official, with the CMA finally getting their hands off the panic button and causing things to continue. Xbox owns, or Microsoft which is Xbox, owns Activision Blizzard King. And Phil Spencer went on the Xbox podcast to talk about it, and we finally get some answers to some of the things people have been having questions about, people worried about. But we're definitely going to dive into what Phil Spencer said, about maybe 10 minutes or so of the most important parts of this podcast. We're going to dive right into it.
But the reason, as much as we'd love to continue talking about that with you, Phil, also the big deal has closed on Friday. And I'm seeing a lot of headlines, a lot of YouTubers saying things like it's done, it's done, and it is, it's done finally, thank God. And we were talking earlier, this isn't the end, this is really the beginning with Xbox and Activision Blizzard. It's a big deal.
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Phil Spencer1:03
Yeah, I think the regulatory process, let's just say it took so long. This whole thing felt like the goal itself was to get through the regulatory process, but that's just the beginning. In fact, this evening I'm flying to Stockholm to see the King team. It's a team I don't know that well, so I'm really excited to do that.
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Host1:45
That's interesting, and that's purposeful because a lot of us have seen and kind of know that one of Microsoft's big plays with Activision is King. Yes, Call of Duty, we get that, but King, Candy Crush, that mobile department. Candy Crush and COD Mobile are just as big for this deal as Call of Duty and Overwatch and the stuff Blizzard is doing in totality. Candy Crush, your mom, your grandma, your auntie, your sister, your baby daddy, uncle, brother, cousin is playing Candy Crush, and it's a big money maker along with COD Mobile.
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Phil Spencer2:21
We're going to see them in Stockholm and then London. They have a couple other locations, I don't know that we're going to make it to all the locations, but I'm really excited about seeing the teams. The following week I'm going down to Southern California, I'll go to Blizzard, I'll go to Sledgehammer Games. To me, when I think about where we're trying to go, it always starts with teams. The teams have to feel motivated, they have to feel inspired, they have to feel safe, they have to feel heard. I think that's super important.
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Host2:48
I mean, we're not going to go down the rabbit hole of what happened at Activision Blizzard, the whole reason why they're being sold, the whole reason why Bobby Kotick is one of the most hated people in the gaming industry. So him going on there off the rip like, we own the company now, I'm going to get down there and show face, let them know that this is not the same Activision as before, super important.
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Phil Spencer3:12
Their passion, their commitment to the things that they build, the way they run their games, that comes from the culture of who they are. I've said it many times, I think teams ship their culture in everything they do, whether it's implicit or explicit. You can kind of feel the dynamic on a team and the creative output, whether it's a band, whether it's a writer, whatever. So spending time with the teams and getting to hear from them where they're going, I have some of my own opinions of course, but they're just opinions. This is about getting time with the teams, thinking about where we're trying to go, then looking at the games and where we are and the roadmap. That's really where the work is, and I'm very, very excited about that.
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Host3:56
And as part of that journey, obviously there's the big burning question that everybody would like to know, and you mentioned it in your Xbox Wire post. Coming back here we go, that's what people want to know. I think that's what you want to know. I know she ain't got to say it, you already know what she's saying. Might be one of my questions. But that is part of it, and you wrote in your Xbox Wire post last week as well that the work has started on bringing Activision Blizzard King games to Game Pass and other platforms. I think speculation and wish lists have been running wild ever since last week. Sure you've seen all of that. But what does that mean exactly, especially when we think about our last acquisition in 2021 with Bethesda? There was a fairly immediate drop of that catalog game, so I think people are looking to that and wondering if that's how the format is going to go now, or what does that actually look like? And I think rightfully so.
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Phil Spencer4:48
When we finished Bethesda, there was this great moment we were able to put a bunch of the back catalog games and celebrate their history. And I wondered about that too, like I honestly wondered how fast we would get Call of Duty, the other Diablo games, all these games inside Game Pass. And this isn't a spoiler because this has been known already. We're talking 2024, probably first quarter 2024. The first big Game Pass announcement of 2024 will likely be like, hey, by the way, here's all the Call of Duty games in Game Pass. And the dope part about that is a lot of the Call of Duty games on Xbox, I see on PlayStation or PC, on Xbox those servers have been fixed and they're playable. The truth of the matter is with Activision Blizzard King, the regulatory process took so long and frankly there was a lot of uncertainty in that process up until really a week before we closed, or the week of when the CMA finally came down to their decision, that we weren't able to get in and work with Activision and Blizzard in this case on that back catalog work. So now we're starting that work. But there is work, and I know the Activision Twitter handle did put out something that talked about 2024. I think that's accurate. There's no secret celebration drop coming in the next couple of weeks. There's not. Definitely when we think about the new games that are there, I would be straight with people. If we were going to put them in the back catalog, I would tell people. And I know there'll be some disappointment about that. This acquisition is definitely long term. So the fact that we're not hitting day one with a bunch of games dropping into Game Pass is a little bit of a downer, but I'm very excited about the future, and I just want to be straight with people that that's where we are.
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Host7:03
There you go, addressing the rumors. Now let's talk about Call of Duty Modern Warfare 3 coming out next month. Very excited. I played the beta over the weekend, the open beta. What do you think?
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Phil Spencer7:10
It's very interesting getting humbled by your reaction time going down every single year. It's very clear that I count my reaction time in like tens of seconds now. People are getting really good at the game.
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Host7:24
But to that point, people are really excited about it. And I think for players who may not be playing on Xbox, they want to know what does this mean for them on their platform. Like, is Xbox going to see exclusive DLC, early release? We know the answer to this, and I don't like it. We know the answer to this, and I do not like it. I'm going to be honest, I get what he's about to say because he's been saying it for the longest time about not having any type of exclusivity around Call of Duty. But even though the beta that they're just talking about was for one point exclusive on PlayStation, this wasn't available on Xbox. Xbox players had to wait. PlayStation gamers getting all that type of DLC maps, all type of stuff, getting stuff early. I know Phil's about to say it, it's not a spoiler because he's always said it, that we're not going to do that, we don't think that's right. But I don't necessarily agree with that. I think yes, you want to have Call of Duty on all platforms, PC, Xbox, PlayStation, and in the future Nintendo. That's obvious. But if you had to choose where they play, even though if they bought it on PlayStation, Xbox is still getting 70%, which I think it wouldn't be 70 because I don't think Activision was even doing a 70/30 with PlayStation. It's more like because Call of Duty is so big, you can probably negotiate somewhere around an 80/20 or 90/10 split, whatever it is, because they sold so many copies on PlayStation. Where would you rather have the copy sold? For all intents and purposes, let's say 70%, let's say 80%. You're getting 80% of them buying it on PlayStation, or 100% of them buying it on Xbox and then probably also buying an Xbox because they probably don't like subscription services, they probably like owning their games. They buy the Xbox and they buy the game, you get 100% of that because you own Call of Duty. And I get it, but I know what he's about to say. I just don't know, man. I think you use your assets to your advantage. You do at the end of the day. I get the promises, but people go back on stuff all the time. So what can you tell players who are looking to play Call of Duty on other platforms? When we say other platforms, I think we're talking about PlayStation.
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Phil Spencer9:38
I think PC players, PC is unique. And I want it to feel like it's part of the overall gaming platform that Xbox focuses on. We've been on that journey for a while with our first party and our Xbox app on PC. There's a lot of work for us to continue to do there. For Call of Duty players on PlayStation and in the future on Nintendo, I want you to feel 100% part of the community. I don't want you to feel like there's content you're missing out on, skins you're missing out on, timing that you're missing out on. That's not the goal. The goal is 100% parity across all platforms as much as we can for launching content. I say as much as we can on parity because clearly some platforms have resolution and frame rate differences just based on performance. But resolution and frame rate differences, that can happen depending on the systems. It can't be 100% parity because at the end of the day, PlayStation will still have some advantage when it comes to things like haptic feedback. If you play Call of Duty on Xbox and then play on PlayStation, you would notice a vast difference when you play. Those triggers alone, and I know Xbox leaked documents that they're going to have a controller that's more closer to the PS5 controller, but there's no parity right now. But there's nothing else. We have no goal of trying to use Call of Duty to get you to buy an Xbox console. You should, but I want the Call of Duty Nation to feel supported across all platforms. We've been on the other side of some of those skins and times, even this beta, it wasn't on Xbox the first week. I don't think that helps the community. I don't think that helps the game. So the focus is, if you're a PlayStation player, Nintendo player, PC player, or an Xbox console player, I want you to feel like 100% part of the Call of Duty Nation.
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Host12:05
Love that. A lot of people, let's talk about the rumors of when things might appear on Game Pass. The other sort of set of rumors or speculation is, are you bringing back Guitar Hero or Tony Hawk? Or would you have Infinity Ward work on this Xbox IP or franchise? And that stuff has been, you know, there was 20 months to think about those types of things. But now that officially the team has joined as of Friday, you have nine studios. There's a wealth of IP from Activision. How are you, for the love of God, I hope that Microsoft lets the studios do more than just Call of Duty. I get Call of Duty is big and it requires a lot of manpower, that's how they get games every year. But let some of the other studios who have pretty much been support studios, let's see what they can make. Let's see what they can do. Thinking about these new teams, these new franchises or new to us franchises, how do you even take all of that in?
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Phil Spencer13:34
The first thing, as I kind of mentioned before, is to go spend time with the teams. Because I just don't think that a team working on something that isn't their passion leads to the best result. So I might have my list of things from my memories and history that I want to see made again, everybody will. When I think about not just Activision Blizzard King, you add in Bethesda, you add in Xbox history, Rare, the amount of franchises that we now have in our portfolio is... It's daunting. I feel that we have to be a great custodian for the content we touch. These are memories from people on different platforms, different decades. We need to make sure that when we're going back and visiting something, we do it with our complete ability, a motivated team that wants to go work on something and make a difference, not just create something for financial gain or create something for a PR announcement and not deliver on the product. So I'm going to start with the teams and what they are passionate about. That's why I'm excited to go on these visits. And then we'll look at it. I think we've done an okay job as Xbox, I don't think we've done an A-plus job on looking at our franchises and revisiting them. It's always a tradeoff between what do you do that's new and going back and doing something. I do think with Game Pass we have the ability to maybe pick a couple franchises every year and almost do like a revisited. I just made up that term, so it's not a brand, it's not on a box. But it is about things like Hexen, just because I remember playing it as a kid. I have no plan for that. But I do think when you look across all the franchises that are a part of our teams, there's an opportunity for us to go back, even if it's just to recognize the moment and what those things meant in gaming's history, and do something right with it, make it available to people through Game Pass. I think there's an opportunity. There's not a plan for that, but there's an opportunity if people want to, if teams want to go back and revisit some of the things that we have and do a full focus on it, I'm going to be all in on that. Because I think there's just an amazing trove of things to go touch again. It doesn't have to just be about Activision Blizzard. When you look across all the portfolio, I think about things like the Quake 2 remaster that just came out. I thought that was awesome. They did a real good job revisiting a game, making it current, but also not leaving the history behind. So I'd love to see more things like that.
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Host16:20
So you mentioned the trove of content, the treasure trove, and you've mentioned Hexen. I think so, it fits. Are there any other games or franchises just for you personally deep in the vault that we can now potentially explore that you're just personally excited for people to discover for the first time or rediscover?
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Phil Spencer16:48
I hadn't really thought about that question specific on Activision and Blizzard. You know, there's some moments in Activision's history. You mentioned Tony Hawk, you mentioned Guitar Hero, things like Skylanders, Tony Hawk, where the teams kind of innovated outside of expectation. What do you mean I'm going to carry a plastic guitar and plug it into my console and play? That's never going to work, until it worked. And then everybody said, well of course that was going to work. Skylander kind of the same way. For me personally though, when I think about the franchises, I kind of go back to things like some of the old Infocom things that were... You just asked for me personally, part of my youth, the text adventure Zork, those kind of things. I think about King's Quest, I thought they did a really nice job. But the Sierra catalog, the Infocom catalog, just because of my age, those things speak to me because they were moments in my gaming career, my gaming experience that really meant something. And I love those. When you think about Blizzard and all the things that they've done, amazing franchises. Starcraft, it was in the video that the teams did, which I know there's been some discussion about should we have done a video for that. And Crash Bandicoot, isn't it wild that Crash Bandicoot, which was once considered the PlayStation mascot, is an IP owned by Microsoft? But there's just some amazing franchises in there. Most important is that we treat them with the respect that they deserve and we don't turn it into some way for us just to have a PR moment or something else.
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Host18:26
100%. By the way, I cried at that video. I almost cried at that video. That was a cool video that we put out on Friday. So come on, everybody. I like the video. I saw some people... But we've been talking about Diablo, Overwatch, all these awesome games Activision and Blizzard both work on. But we talk about ABK, the K stands for King, and that's definitely mobile gaming focused. So how are you thinking about mobile gaming as it pertains to Xbox?
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Phil Spencer18:54
My goal as head of Xbox, I've been here over 20 years, I want Xbox to be a great brand, a great community for people over the next decades to come. So when I've thought about what do we need to have in our portfolio and our capability as a team to ensure 30 years from now Xbox is bigger and stronger than it is today, we've got to be relevant on mobile. There's just no way to really see the future without being on the platform that most of the planet plays on. The business models are different, the whole dynamic of how you distribute, how you find games is different. So when I was looking at that, I needed to find a team that's had amazing success for us to learn from. So literally, Amy Hood, who's the CFO of Microsoft, and I went through a list of who are the most accomplished publishers in the mobile space. And most people wouldn't have expected, I think I didn't, that Activision would have been as high with the King work, as well as the Call of Duty Mobile work, Warzone stuff that they've been doing, Diablo Immortal. And so I want to go learn from those teams because I think it's critical for us to deliver on the full promise of over two billion people playing. The opportunity to reach more people.
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Host20:18
This is about half of the story. There's lots of stuff here, and I don't want to drag this thing out, but I think some of the most important things here, I'm glad he touched on. He's reminding PlayStation gamers that you're not being left out, you're going to get... And I don't agree with it, I don't agree with it, but it is what it is. But I do think it's dope that he's getting the ball rolling by going over to these studios, because we know there's a culture issue. We do understand that even within Xbox, there was an issue with delivering games. So he needs to get over there. But listen, go watch the whole thing. The whole thing is about 40 minutes long. Let me know what you guys think in the comment section down below. Are you super excited that this thing is over with? Are you a little bit disappointed if you're an Xbox gamer that you won't be getting these perks that your PlayStation brethren have been receiving this entire time? Let me know what you guys think in the comments section down below. Get your gaming news from lv1gaming.com. You guys have a great one, and I'm out.