Microsoft Confirms Xbox CEO Phil Spencer's Retirement

"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.NEW RELEASES:This week's most notable new game release is Capcom'ssurvival horror game "Resident Evil Requiem," which launches February 27 for PC, PlayStation 5, Xbox Series X/S, and Nintendo Switch 2. Along with "Requiem," Capcom is also releasing 2017's "Resident Evil 7: Biohazard" and 2021's "Resident Evil Village" on Switch 2 the same day. Meanwhile, Ubisoft'smobile shooter "Rainbow Six Mobile" launched on iOS and Android on February 23, while Nintendo is releasing ports of previous Game Boy Advance titles "Pokemon FireRed" and "Pokemon LeafGreen" for Switch and Switch 2 on February 27 in celebration of the 30th anniversary of the "Pokemon" franchise.CIRCANA JANUARY:Late last week, Circana analyst Mat Piscatella said that total January projected spending across video game hardware, content and accessories grew 3% when compared to a year ago, to $4.7B. A 23% increase in subscription spending and 16% growth in hardware fueled the gain. Hardware spending increased 16% when compared to a year ago, reaching $248M. Nintendo Switch 2 spending was able to offset year-on-year declines seen across PlayStation 5 with a 17% decline, Xbox Series with a 27% decline, and Switch with a 79% decline. Despite sales falling compared to a year ago, PlayStation 5 led the hardware market in both unit and dollar sales during January 2026. Nintendo Switch 2 ranked 2nd across both measures.January video game content spending grew 3% when compared to a year ago, to $4.3B. A 23% increase in subscription spending combined with slight gains across Console and PC content to offset a small drop in mobile. Activision's "Call of Duty: Black Ops 7" repeated as the best-selling game of the month. Bandai Namco's"Code Vein II" was the only new release to appear on the January best-selling titles chart, ranking 11th overall. It placed first on the PC aggregated storefronts chart. Other top-selling games for the month were Take-Two's"NBA 2K26" and "Grand Theft Auto V," EA's"Madden NFL 26" and "Battlefield 6," and Microsoft's "Minecraft."XBOX MANAGEMENT:On Friday, Microsoft CEO Satya Nadella confirmed reporting that Microsoft Gaming CEO Phil Spencer will be retiring from the company, with Microsoft CoreAI president Asha Sharma named his successor. "Over the last two years at Microsoft, and previously as Chief Operating Officer at Instacart and a Vice President at Meta, Asha has helped build and scale services that reach billions of people and support thriving consumer and developer ecosystems. She brings deep experience building and growing platforms, aligning business models to long-term value, and operating at global scale, which will be critical in leading our gaming business into its next era of growth," Nadella said in a letter to employees. Xbox Game Studios boss Matt Booty will be promoted to chief content officer, while Xbox president Sarah Bond has resigned from her position.BLUEPOINT:Sony's PlayStation business is closing game development studio Bluepoint Games, which is known for notable remakes of "Demon's Souls" and "Shadow of the Colossus," Bloomberg's Jason Schreierlast week. Roughly 70 workers will be impacted by the closure of Bluepoint, which Sony acquired in 2021, Schreier said, noting that the studio had been working on a live service game based on "God of War" until it was canceled early last year. The studio then spent the remaining year pitching and trying to figure out what to do next, Schreier added.MORE VIDEO GAME NEWS:The Pokemon CompanyExcell Brands, a U.S. distributor and category management service provider of trading cards and collectiblesUbisoft hasto oversee development of the "Assassin's Creed" franchiseMeanwhile, Ubisoftit laid off 40 workers at its Toronto studioRobloxis being sued by Los Angeles Ccounty over child protections,Tencentwas the lead financial backer of "Highguard" developer Wildlight,