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Xbox Game Studios Head Craig Duncan and Chief of Staff Louise O’Connor Step Down

Their exits deepen a leadership shake-up as Xbox prepares a business reset that may bring large staff cuts and studio reviews.

Overview

  • Craig Duncan and Louise O’Connor told staff they will leave Xbox Game Studios this week, a move first reported Monday, June 15, 2026 by multiple outlets.
  • While Microsoft searches for a permanent replacement, the studios Duncan oversaw will report to Xbox Chief Content Officer Matt Booty on an interim basis.
  • Both executives are long-time Rare veterans: Duncan led Rare from about 2011 until his promotion in November 2024 and O’Connor held senior production roles at Rare before becoming XGS chief of staff in 2025.
  • Their departures come as new Xbox CEO Asha Sharma has ordered a business 'reset' focused on profitability, a plan that reporting says includes budget cuts, portfolio reviews and expected large layoffs.
  • Microsoft has not publicly given specific reasons for the pair’s exits, and the change raises short-term uncertainty for studio leadership, project schedules and the roughly 30 internal teams under XGS oversight.