Popular global Microsoft Game Studios boss Shane Kim has been promoted to a new business development position – with European studios manager Phil Spencer set to switch back to the US to replace him.

Kim will assume the role of corporate VP of strategy and business development for Microsoft’s Interactive division in a newly created role.

Spencer, a Microsoft Game Studios veteran for six years, will assume leadership of all first-party development and publishing efforts worldwide.

Both will report directly to Don Mattrick, senior vice president of the Interactive Entertainment Business.

Microsoft VP of Interactive Entertainment Business in Europe Chris Lewis is now tasked with finding a replacement for Spencer.

Lewis told MCV:

“We’ll personally and professionally miss Phil. He’s left some legacy in EMEA. When it comes to his replacement, this is a critical role, because Europe is a real hot bed of talent for developing games.

“We want someone that really understands and is well versed in the challenges of EMEA business. They need to understand strategy and leadership, and be someone who is agile and can be a change agent. They must be someone who understand how our studios work. We’re going to be careful how we hire against that role.”

In his new role, Kim will be  tasked with exploring new growth opportunities with global partners. His focus will be on future external relationships and partnerships, as well as developing growth strategies for the entire business.

Spencer will return to the US from the UK to take on his new role as general manager of the global Microsoft Game Studios business. Spencer will oversee the creation of new, unannounced franchises that aim to attract new audiences.