The head of Microsoft's Xbox division says the after-hours entertainment "was not consistent or aligned to our values."
The video game industry has long been the subject of complaints that it objectifies women and doesn't make them feel welcome as players or game-builders. Industry leaders have pledged to do better. Microsoft sponsored a luncheon to promote diversity at this year's Game Developer Conference in San Francisco.
Several attendees at Thursday's party complained on social media that the hired dancers were offensive. In a statement, Xbox chief Phil Spencer acknowledged the event "disappointed many people" and said the criticism was deserved.