Phil Spencer Outmaneuvered Bobby Kotick: How the Head of Xbox Almost Became Activision’s Successor, and Instead, Acquired the Entire Company for $68.7 Billion
Former Activision Blizzard CEO Bobby Kotick revealed that in 2014, he almost made Phil Spencer his successor—but Spencer chose Xbox and ultimately acquired Kotick’s publisher. The interview, which surfaced on the Kleiner Perkins YouTube channel and was later broadcast on the Grit Podcast, sheds light on an alternative history of the gaming industry.
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“Dude, Take It”: How Kotick Let Spencer Go to Xbox
Kotick hired Spencer to head up a division of Activision. The plan went so far that the former head of the publishing company seriously considered him as the future head of the entire company.
“I was prepared to make him probably my successor.”
But then Spencer called and said he’d been offered the job as head of Xbox. Kotick’s reaction was unexpected:
“Dude, sure, take it! It’s your dream job.”
Kotick admitted he wanted Spencer on his team, but he knew holding him back from his dream job was pointless.
The outcome is well-known: Spencer led Xbox, steered it out of crisis, launched Game Pass, and then led Microsoft to acquire Activision Blizzard for $68.7 billion. Some sources list the deal price as $69 billion—the discrepancy is due to the publisher’s net debt at the time of its closure.
Phil Spencer: From Intern to Head of a Gaming Empire
Spencer joined Microsoft in 1988 as an intern. He worked on Encarta and Microsoft Money, and in 2001, he joined the Xbox team.
In 2014, he was tasked with leading Xbox out of its systemic crisis after the disastrous Don Matrick era. Since 2022, Spencer has been the CEO of Microsoft Gaming, which includes Xbox, ZeniMax, and Activision Blizzard King.
In February 2026, Spencer retired after 38 years at the company. He was succeeded by Asha Sharma.
Timeline: How Spencer Outmaneuvered His Potential Boss
The Irony of Fate: The Successor Became the Buyer
Kotick admits that it was his personal acquaintance with Spencer that simplified the sale negotiations.
“I knew the guy well… and I thought he would be an excellent leader in the future.”
Spencer declined the position of successor and instead built an empire that absorbed Kotick’s company. Then he himself retired, leaving Xbox in the hands of a new generation of top managers.
What’s next? Microsoft Gaming, under Asha Sharma, will continue its focus on the Game Pass ecosystem and multiplatform expansion. But the story of how one phone call changed the fate of two industry giants will remain one of the most sensational in the gaming business.
