“We ended up not signing Destiny”: Phil Spencer Reveals How a Missed Opportunity in 2014 Ended up Costing Xbox $69 Billion Eight Years Later

Phil Spencer, head of Microsoft Gaming might have made a grave mistake for passing up on Bungie that could have benefitted the Xbox platform.

Phil Spencer, Xbox
Image by eVRydayVR, licensed under CC0 1.0 Universal, via Wikimedia Commons

SUMMARY

  • During a panel at PAX West 2024, Phil Spencer revealed Bungie pitched Destiny to them first.
  • Bungie was eventually acquired by Sony to moderate, oversee, and offer professional consultation regarding future PlayStation multiplayer games.
  • Phil Spencer might have made a mistake 10 years ago but did not let it slow him or the Xbox brand down.
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Phil Spencer has been appointed the head of Microsoft Gaming for the past decade and has made some questionable decisions for the Xbox platform. Microsoft went on an aggressive acquisition spree not too long ago and might have made a terrible mistake by betting on the wrong company for growth.

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Phil Spencer talking about Xbox
Phil Spencer has ambitious plans for the future of Xbox. Image Credit: Microsoft

Bungie was an option for acquisition but Spencer ultimately went with Activision because it had much more favorable franchises to utilize. However, Spencer failed to realize the benefits of acquiring Bungie, a well-known studio that could have propelled the platform to new heights because he had something else in mind.

Phil Spencer Reflected How One Decision Could Have Changed the Fate of Microsoft

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Phil Spencer commenting about future plans at Gamescom 2024.
Phil Spencer Xbox Podcast

The gaming community is reeling from the recent events that have transpired for the Xbox brand and is struggling to come to terms with Spencer’s vision and questionable yet creative decisions. Some players joke about Sony being a team player to keep Phil Spencer on the Microsoft payroll by allowing the PlayStation 5 port of Indiana Jones and the Great Circle.

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It is evident that Spencer is interested in a different approach and is shifting his focus to pioneer streaming services like Game Pass. During his panel at PAX West 2024, Spencer revealed at one point in 2014, Bungie first approached Microsoft for an exclusivity deal for the original Destiny game which Spencer did not sign, and 8 years later, Microsoft spent a fortune acquiring Activision.

If Spencer had chosen to stick with Bungie a decade ago, there is no telling how successful the Xbox platform would be today knowing that online multiplayer games are all the rage nowadays. Nevertheless, Spencer does not believe in regrets, and acquiring Activision means major gaming franchises like Call of Duty belong to them, and these games sell well on rival platforms.

Unfortunately, despite operating under the Microsoft umbrella, most players of the gaming community still prefer to use a rival console like the PlayStation 5 to play Call of Duty and other games developed by Xbox first-party studios. Spencer could have saved the company $69 billion years prior if he had chosen to sign a deal with Bungie, a missed opportunity that forever changed the course of gaming history.

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Phil Spencer Literally and Figuratively Altered the Destiny of Microsoft Gaming

Phil Spencer talking about Xbox
The Xbox community is slowly losing faith in Spencer’s master plan. Image Credit: Microsoft

During this year’s Gamescom, many of the most loyal Xbox supporters felt betrayed by Spencer after he repeatedly stated that major first-party games like Indiana Jones and the Great Circle from Bethesda Game Studios would not be shared. Situations like this often drive a wedge between a game developer and the community which is not ideal.

Looking back, people might say Spencer made one of the biggest mistakes in his career but there is a silver lining. If the original Destiny had been signed on to Xbox, the game may not have shined and reached its full potential leading to more players being exposed to the franchise.

Spencer controls a few major gaming studios like Activision and Bethesda Game Studios and could still turn things upside down in his favor. Console and platform exclusivity is something he is no longer interested in and has been vocal about before; however, the recent Indiana Jones port was a major blunder on his part and fans are concerned about the future.

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Another silver lining is that Call of Duty: Black Ops 6 will be available on Xbox Game Pass on day one which is convenient for subscribers. Spencer envisioned having all major Call of Duty installments on the service on launch day and he achieved that dream faster than anticipated.

Do you think Phil Spencer made a mistake passing up on Bungie 10 years ago? Let us know in the comments section below!

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Written by Rouvin Josef Quirimit

Articles Published: 950

Piqued by his interest in superheroes during the early days of Marvel movies, Rouvin fell in a rabbit hole of pop culture. His passion for movies led to video games and he fell in love with God of War, The Last of Us, Uncharted, Red Dead Redemption, and more great single-player games that paved the way for his career as a gaming writer.