Microsoft Corporation (NASDAQ:MSFT) gaming boss Phil Spencer told staff he is "evaluating all aspects of our relationship" with video games company Activision Blizzard amid questions about its chief executive’s handling of sexual misconduct allegations, according to news reports.
Spencer told employees in a memo he was “disturbed and deeply troubled by the horrific events and actions” at Activision and that Microsoft is “evaluating all aspects of our relationship with Activision Blizzard and making ongoing proactive adjustments”, Bloomberg reported.
Spencer is the executive vice-president of Gaming at Microsoft and head of the Xbox brand.
According to a Wall Street Journal report, Activision CEO Bobby Kotick knew about instances of sexual misconduct at the company for years without reporting them to the board.
Sony (NYSE:SNE) Interactive Entertainment CEO Jim Ryan also expressed concern about the situation, writing in a leaked internal memo he was "disheartened and frankly stunned to read” the report in the Wall Street Journal's report.
Earlier this week, Activision Blizzard employees staged a walkout to protest against the company’s response to the allegations.
A shareholder group has called on the board to remove Kotick and for the board's two longest-serving directors to retire by the end of the year.
According to a report in the Guardian, Kotick rejected accusations Activision is dominated by a “frat boy” culture. He is quoted as saying, "I am very committed to making sure we have the most welcoming, most inclusive workplace in the industry”.