Xbox Boss Phil Spencer Retires as Microsoft Shakes Up Gaming Unit

During 12 years leading Xbox, Phil Spencer oversaw blockbuster studio buys and an evolution to video games being played just about anywhere players can get online. KEVORK DJANSEZIAN / GETTY IMAGES NORTH AMERICA/AFP
During 12 years leading Xbox, Phil Spencer oversaw blockbuster studio buys and an evolution to video games being played just about anywhere players can get online. KEVORK DJANSEZIAN / GETTY IMAGES NORTH AMERICA/AFP
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Xbox Boss Phil Spencer Retires as Microsoft Shakes Up Gaming Unit

During 12 years leading Xbox, Phil Spencer oversaw blockbuster studio buys and an evolution to video games being played just about anywhere players can get online. KEVORK DJANSEZIAN / GETTY IMAGES NORTH AMERICA/AFP
During 12 years leading Xbox, Phil Spencer oversaw blockbuster studio buys and an evolution to video games being played just about anywhere players can get online. KEVORK DJANSEZIAN / GETTY IMAGES NORTH AMERICA/AFP

Microsoft on Friday put out word that Xbox stalwart Phil Spencer is retiring, in a shakeup of leadership at the tech titan's video game unit.

Former Instacart chief operating officer Asha Sharma will take over as head of Microsoft Gaming, with Matt Booty becoming executive vice president and chief content officer, said AFP.

"As we celebrate Xbox's 25th year, the opportunity and innovation agenda in front of us is expansive," Microsoft chief executive Satya Nadella said in a message to employees.

"I am long on gaming and its role at the center of our consumer ambition."

Changes to the gaming team include Sarah Bond leaving her job as Xbox president "to begin a new chapter" away from Microsoft, according to the company.

The shakeup comes as cloud computing and artificial intelligence have become priorities at Microsoft, driving revenue growth but also massive spending on infrastructure to power the technology.

"When I walked through Microsoft's doors as an intern in June of 1988, I could never have imagined the products I'd help build, the players and customers we'd serve or the extraordinary teams I'd be lucky enough to join," Spencer said in a message to colleagues.

"It's been an epic ride and truly the privilege of a lifetime."

Spencer headed the Xbox unit for 12 of his 38 years at Microsoft, nearly tripling the size of the business as video games evolved from packaged software for consoles to subscription services and digital downloads on an array of devices.

Spencer also guided the Xbox team through acquisitions of Activision Blizzard, ZeniMax, and Minecraft.

Xbox boasts more than 500 million monthly users and a vast stable of game studios, along with a subscription gaming service.

"We are witnessing the reinvention of play," Sharma said in a blog post announcing the leadership changes.

"To meet the moment, we will invent new business models and new ways to play by leaning into what we already have: iconic teams, characters and worlds that people love."



Samsung Electronics Appoints New TV Chief amid Mounting Competition

FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025.   REUTERS/Kim Hong-Ji/File Photo
FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji/File Photo
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Samsung Electronics Appoints New TV Chief amid Mounting Competition

FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025.   REUTERS/Kim Hong-Ji/File Photo
FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji/File Photo

Samsung Electronics, the world's No. 1 TV maker, has replaced its TV head for the first time in more than two years, as it faces mounting competition from Chinese rivals at home and abroad.

Samsung said in a statement on Monday that it has appointed Lee Won-jin, who was previously head of the Global Marketing Office, ⁠as the new ⁠head of its Visual Display Business, succeeding Yong Seok-woo, who will serve as an adviser.

Samsung usually carries out its annual management reshuffle around December, and the company did not disclose the ⁠reason for the replacement.

A Samsung Electronics official told Reuters the new leader is expected to bring a fresh perspective and the change needed for the TV business, which is facing intensifying market competition.

In March, China's TCL Electronics and Japan's Sony signed binding agreements for a strategic partnership in the home entertainment field, increasing pressure on rivals.

The ⁠Nikkei ⁠newspaper previously reported Samsung was considering discontinuing sales of home appliances and TVs in China within this year in the face of competition from Chinese companies that have undercut rivals.

Samsung said last month its TV profit declined in the first quarter because of stagnating demand and rising raw-material costs. Lee had previously worked at Google before moving to Samsung in 2014.


Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
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Meta Faces New Mexico Trial That Could Force Changes to Facebook, Other Platforms

The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)
The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. (Reuters)

A trial beginning in New Mexico on Monday could prompt a judge to order sweeping changes to how Facebook, Instagram and WhatsApp operate - a move Meta Platforms has warned could force it to withdraw from the state.

The case, which will be tried before a judge in Santa Fe, stems from a lawsuit filed by New Mexico Attorney General Raúl Torrez, a Democrat, accusing the social media giant of designing its products to addict young users and failing to protect children from sexual exploitation on its platforms.

At the heart of the trial is whether Meta’s platforms have created a "public nuisance" under New Mexico law. That finding would allow the judge to order wide-ranging remedies aimed at curbing alleged harms to young users. The case is being closely watched as states, municipalities and school districts across the country pursue similar claims seeking to force changes at the industry level.

Monday's trial marks the second phase of New Mexico's lawsuit. A jury in March found Meta violated the state’s consumer protection law by misrepresenting the safety of Facebook and Instagram for young users. ‌It ordered the ‌company to pay $375 million in damages.

Criticism of children's safety on social media has been mounting for years. ‌On ⁠Wednesday, Meta warned ⁠investors that legal and regulatory blowback in the European Union and the US "could significantly impact our business and financial results."

SWEEPING REMEDIES AT STAKE

Torrez’s office is expected to seek both billions of dollars more in damages and an order requiring Meta to make substantial changes to its platforms for New Mexico users, according to court filings.

Meta has said it has already addressed many of the state's concerns and taken extensive measures to ensure its young users are safe. The company said in court filings last week that many of the changes Torrez’s office is seeking are impossible for it to comply with and may force it to withdraw from the state entirely.

"The New Mexico Attorney General’s focus on a single platform is a misguided strategy ⁠that ignores the hundreds of other apps teens use daily," a Meta spokesperson said in a statement ahead ‌of the trial. "Rather than providing comprehensive protections, the state's proposed mandates infringe on parental rights ‌and stifle free expression for all New Mexicans."

A ‘PUBLIC NUISANCE’

The trial before Judge Bryan Biedscheid will examine whether Meta's conduct meets the standard for a public nuisance ‌under New Mexico law, which would allow the court to impose remedies aimed at abating the alleged harm.

A public nuisance claim targets ‌activities that unreasonably interfere with the health and safety of a community. Classic examples include blocking a public road, polluting a waterway or emitting noxious fumes.

State governments have invoked public nuisance law in recent decades to pursue a broader range of industries, including litigation tied to tobacco, opioids, climate change, and vaping, said Adam Zimmerman, a professor at USC’s Gould School of Law.

New Mexico's case is among a growing number of lawsuits accusing Meta and other social media companies ‌of intentionally designing products to be addictive to young people.

While many cases have been filed by families over specific injuries to individuals, more than 40 other states and over 1,300 school districts have ⁠filed lawsuits seeking court-ordered changes ⁠and damages under public nuisance law.

New Mexico said it plans to ask the judge to order Meta to make changes including verifying users' ages; redesigning its algorithm to promote quality content for minors; and ending autoplay and infinite scrolling for minors.

"It will be an opportunity for us to explore more deeply the size and scale and effectively the monetary value of the public nuisance harm that was a product of this business's behavior for the last, you know, 10 or 15 years," Torrez told reporters at a press conference on Thursday ahead of the trial.

The company has said in court filings that it cannot have created a public nuisance because it has not interfered with a public right. It also said there is no scientific evidence to support the idea that social media has caused mental health problems, and that many of the state’s requests are "technologically impractical or completely impossible."

In a public nuisance case, the state can also seek money damages to abate the harm. That sum could be substantial when the impact is said to have affected large segments of the population. Torrez’s office has not detailed the amount it will seek.

Meta said in court filings New Mexico plans to ask for $3.7 billion in damages to fund a 15-year mental health plan including new healthcare facilities and hiring providers, a request it said would require it pay for mental health care for all teens in the state regardless of the cause of their needs.


Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
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Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo

The Pentagon said on Friday it had reached agreements with seven AI companies to deploy their advanced capabilities on the Defense Department's classified networks as it seeks to broaden the range of AI providers working across the military.

The statement notably excludes Anthropic, which has been in dispute with the Pentagon over guardrails for the use of its artificial intelligence tools by the military, Reuters reported.

The Pentagon labeled the AI startup, which is widely used across the Department of Defense, a supply-chain risk earlier this year, barring its use by the Pentagon and its contractors.

SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft and Amazon Web Services, several of which already work with the Pentagon, will be integrated into its Impact Levels 6 and 7 network environments giving more of the military access to their products, the Pentagon said in a statement.

By expanding the AI services offered to troops, who use it for planning, logistics, targeting and a bevy of other reasons to streamline huge operations and perform more quickly, the Pentagon said in its statement it will avoid "vendor lock", a likely nod to its overdependence on Anthropic. Pentagon staffers, former officials and IT contractors who work closely with the US military have told Reuters they were reluctant to give upAnthropic’s AI tools, which they view as superior to alternatives, despite orders to remove them over the next six months.

AI has become increasingly important for the US military. The Pentagon's main AI platform GenAI.mil has been used by over 1.3 million Defense Department personnel, the agency noted in its release, after five months of operation.

Google, which is already used within the Pentagon, has signed a deal enabling the Department of Defense to use its artificial intelligence models for classified work, a source told Reuters earlier this week.

ANTHROPIC STILL A 'RISK'

Defense Department Chief Technology Officer Emil Michael on Friday told CNBC that Anthropic remained a supply-chain risk, but that Mythos, the company’s artificial intelligence model with advanced cyber capabilities that created a stir among US officials and corporate America over its ability to supercharge hackers, was a “separate national security moment.”

While numerous companies and public and private entities have gained access to a Mythos preview product to help secure their IT infrastructure against future cyberattacks, it is not clear if the Pentagon is part of that program. US President Donald Trump said last week that Anthropic was "shaping up" in the eyes of his administration, opening the door for the AI company to reverse its blacklisting at the Pentagon.

Still, the falling out reinforced the need to diversify the supply of AI tools for the military, opening new opportunities for small defense industry artificial intelligence startups.