Phil Spencer, who was most recently serving as chief of Microsoft Studios, will now be taking over as head of Microsoft's Xbox branch the company announced today. Not only will Spencer lead the his previous Microsoft Studios division, but the Xbox branch also includes Xbox Live, Xbox Music and Xbox Video.

"Combining these teams will strengthen the connection between some of the world's most innovative creators and those building the Xbox itself," said Spencer in a statement on Xbox Wire. "It's been a remarkable year for Xbox and I am honored to lead the team at this incredible time for Microsoft and the games industry."

The announcement comes as part of a company wide email from Microsoft CEO Satya Nadella, who also officially announced Stephen Elop as Executive Vice President of Microsoft Devices Group. Elop, said Nadella, will work with Spencer and Myerson when it comes to the Xbox platform.

"Combining all our software, gaming and content assets across the Xbox team under a single leader and aligning with the [Operating Systems Group] team will help ensure we continue to do great work across the Xbox business, and bring more of the magic of Xbox to all form factors, including tablets, PCs and phones," said Nadella. "I love the way the Xbox team is focused on great games and gaming experiences (go, Titanfall!), connects with its fans, pushes the boundary of entertainment and has embraced the power of the cloud in such interesting and impactful ways. Phil is the right person to lead Xbox forward."

Spencer hasn't let the dust settle, already teasing further announcements for the Xbox brand come E3 2014 this June. Speaking with Polygon, Spencer revealed that the team are now focusing more "on the games: what new IP we are investing in, what's going on in Japan, what are we doing with Halo." The new Chief of Xbox Division also believes Microsoft will catch up to Sony's PlayStation 4, which is currently outpacing the Xbox One by quite a large margin.

"We're early on in the console generation, and obviously Sony's having a great launch," he said. "Console gaming is doing incredibly well right now. Six months ago, everybody wondered if console gaming was dead... but this is a long, multi-year generation and my fundamental belief is that great games create the best platforms."