Xbox Game Studios Boss Is Out Ahead Of Reported Layoffs And Other Major Changes To “Reset” Xbox

Craig Duncan, the head of Xbox Game Studios, is leaving the company after 15 years at Microsoft, and so is his chief of staff. The changes come ahead of reported layoffs and possible studio closures at Xbox under the leadership of Xbox CEO Asha Sharma, who has vowed to "reset" the Xbox business. Duncan was the longtime studio head at Sea of Thieves developer Rare before he got promoted to overall Head of Xbox Game Studios in November 2024. He took over that position from Matt Booty, who was himself promoted to executive vice president and chief content officer at Xbox. Prior to his tenure at Xbox, Duncan was a development manager and director of product development for Codemasters. He also worked on the executive team at Midway Games until its closure in 2009. He then went to Sumo Digital before starting at Rare in 2011. Duncan's departure from Xbox came just 48 hours after he posted on LinkedIn about how excited he was about the future of Xbox Games Studios and its many upcoming projects. Additionally, Xbox Game Studios chief of staff Louise O'Connor is on the way out from Xbox. She had been with Rare since 1999, starting there as an animator before working up to Head of Animation and then Art Director. She became chief of staff for Xbox Game Studios in August 2025. In a memo to staff obtained by The Game Business, Duncan said, "I’m proud to say we delivered many flawless launches that drove business success for the company." Addressing O'Connor, Duncan said she "consistently championed the craft and supported our studios with clarity and care." Just recently, Microsoft CEO Satya Nadella talked about how Xbox has been struggling for some time and that it is imperative that Microsoft finds a way to "turn [Xbox] into a sustainable business." In other Xbox news, it was recently reported that Microsoft could spin off Xbox and accelerate the development of the next Halo and Fallout games.