Highlights
- The head of Xbox Game Studios, and the division’s chief of staff are reportedly leaving Xbox this week amid wider restructuring concerns.
- Duncan’s first-party studios will now report to Matt Booty until a replacement is named.
- The departures come as reports point to expected Xbox layoffs that could affect thousands of roles.
Xbox Game Studios head, Craig Duncan, and chief of staff, Louise O’Connor, are reportedly leaving Microsoft this week. Their exit adds to a period of uncertainty for the company’s gaming division as it faces expected layoffs and wider internal changes.
The departures come as Xbox leadership signals a broader reset. Xbox chief executive officer (CEO), Asha Sharma, recently spoke about a “business reset” as the company continues to evaluate its gaming strategy. Separately, Microsoft CEO, Satya Nadella, stated on Hard Fork Live that the gaming business must become “sustainable,” amid claims the division could eventually operate as a separate Microsoft subsidiary.
Duncan took over Xbox Game Studios in November 2024 after replacing Alan Hartman and oversaw Microsoft’s first-party teams, including:
- Halo Studios
- The Coalition
- Asobo Studio (Flight Simulator)
- Turn 10 Studios
- Playground Games
- Rare
- Ninja Theory
- Compulsion Games
- Obsidian Entertainment
- The Initiative
- Double Fine Productions
- inXile Entertainment
- Undead Labs
- World's Edge
- XGS Publishing
Those studios will now report to Chief Content Officer (CCO), Matt Booty, until a replacement is named.
Xbox's Alleged Leadership Exits Come as Layoffs Loom
Duncan joined Xbox in 2011 and spent nearly 14 years leading Rare, where he guided the studio through its Kinect era and the launch of Sea of Thieves. In an internal email, he noted that he aimed to support teams, strengthen studio culture, and “deliver high-quality games” during his tenure.
O’Connor is also departing after less than a year as chief of staff. She joined Rare in 1999 as an animator on Conker's Bad Fur Day and later moved into art and production roles. During her time at the studio, she also voiced Leafos in Viva Piñata, earning an AIAS award, before moving into Xbox leadership after Everwild was canceled in 2025.
The exits come as multiple reports point to layoffs later this month, with speculation that cuts could reach thousands of roles and affect at least one studio.
