A Memo from David Capossela, CEO of Microsoft Interactive Entertainment, and a Keynote to the Conversation on Microsoft Copilot, Windows, Office, and Snapdragon Summit

Microsoft will need to carefully integrate Activision Blizzard into its Microsoft Gaming division. The operations head for Microsoft gaming will be Dave McCarthy. We are waiting on Microsoft to appoint a new CEO for Activision Blizzard to replace Kotick at the end of the year.

Microsoft Gaming will hopefully avoid scenarios like Redfall in the future with the help of Booty’s expanded role.

“Great games are fundamental to everything we do,” explains Spencer in his memo. “We believe that an expanded gaming content organization — one that enables Xbox Game Studios and ZeniMax’s development studios to collaborate effectively together — will empower those world-class studios to do their best work in growing our portfolio of games players love.”

Bond will take charge of both hardware and software for the future of Xbox, which could include a hybrid console in 2028 and a disc-less Series X next year.

Capossela has been at Microsoft for 32 years, and during the presentation where Windows 98 crashed into a Blue Screen of Death, he appeared alongside Bill Gates. Capossela has led marketing at Microsoft for decades, throughout the transition to cloud, the launch of Xbox, and many more moments.

In his memo, Nadella states that Yusuf will serve as a champion of our end user experiences and build upon his work launching several of Microsoft Copilot product marketing services. The Search, Ad, News, Devices and Creativity customer solution areas will continue to be led by him.

Microsoft has been integrating AI into Windows, Office apps, Bing, and much more in an attempt to be an early leader in AI. Next week, Microsoft will launch Microsoft Copilot, allowing businesses to generate emails, rewrite paragraphs, analyze data, and more. Nadella discussed the potential for AI during Qualcomm’s Snapdragon Summit earlier this week.

“When Windows first came together we had the Start button, the Copilot is like the Start button,” said Nadella earlier this week. “It becomes the orchestrator of all your app experiences. So for example, I just go there and express my intent and it either navigates me to an application or it brings the application to the Copilot, so it helps me learn, query and create — and completely changes, I think, the user habits.”

Ami, Sarah, Dave: What are you waiting for in the Xbox Gaming organization? We are excited to announce that Microsoft gaming is progressing well beyond the $1B$ limit

Microsoft Gaming is on a multi-year journey to reach players where they are, on the devices they choose to play, and our strategy is working. We have thirteen $1B+ franchises in our portfolio and we just set new records for engagement in Game Pass. As our business continues to grow, it’s important that we structure ourselves to sustain that momentum with effective clarity and accountability across Gaming. In that spirit, we are making some organizational changes.

I have continued the roles of Bobby Kotick, Julia Main, Cynthia Per- Lee, and others into the end of the year.

I’m excited to partner with this team of leaders to advance our mission for the next era of Xbox in service of players and creators. They will steer our organization to success and I am certain of that. Please join me in welcoming Ami and her team, and congratulating Matt, Sarah and Dave on their new roles.

Change can be communicated through one vehicle, emails. You will hear more about these changes from your manager and leader in the coming days. The evolution of our organization will be discussed in our next town hall on October 30th. Thank you for your contributions and dedication to everything we do to bring the joy of gaming to everyone on the planet.