Xbox Game Studios head Matt Booty had to reportedly pull the controller away from Spencer when he tried an early build in March.
Xbox’s once bold vision for the future now feels uncertain as layoffs and major project cancellations shake gamers' confidence.
Phil Spencer, who originally took on leadership of the Xbox division back in 2014, apparently has no plans to retire for now.
Several game studios under Microsoft are seeing a shake-up, including Rare, where veteran designers have allegedly departed.
One employee noted that Phil Spencer's email announcing the lay-offs also bragging about Xbox profits led to them being "super pissed".
In an internal email, Xbox's Matt Booty said the layoffs and project cancellations represent "a broader effort to adjust priorities."
Raven Software and Sledgehammer Games, known for their work on the Call of Duty series, have also reportedly faced layoffs.
The extent of the layoffs is unknown, but meetings for the studio's employees are allegedly showing up "on a rolling basis."
Joanna Dark's long-awaited return may have been canned as part of Microsoft's recent wave of layoffs and project cancellations.
The project has reportedly been in development for almost a decade with Phil Spencer even recently claiming that it was progressing.
King and ZeniMax Media will reportedly face cuts, but the full extent of the damage to Microsoft Gaming as a whole is unknown.
Halo Studios wrote about how it rebranded from 343 Industries at HaloWC last year, and how this year it will have more to show.
The Ascent and High on Life also return to the service while Square Enix's Legends of Mana and Trials of Mana debut for the first time.
According to creative director Brandon Adler, players who like stealth can build that way, while those want to blow things up also can.
In a new video, Laura Fryer spoke about Microsoft's recent focus on making Xbox more of a brand than console hardware.
Exoskeletons, which were introduced in Call of Duty: Advanced Warfare, appear to be making a comeback based on leaked images.
This follows a post by 3D Realms' George Broussard about 1,000 to 2,000 layoffs, affecting 10 to 20 percent of the Xbox division.
The Dark Rot from the first game returns as an optional challenge, with progress getting wiped if it reaches Senua's head.
The next generation of Xbox consoles is officially coming, but will Microsoft take a different approach after the middling Xbox Series X/S?
Pre-orders are live with the $69.99 Deluxe Edition also offering an enhanced version of Hellblade: Senua's Sacrifice for PlayStation 5.