Overview
- Craig Duncan and chief of staff Louise O’Connor confirmed they will leave Xbox Game Studios this week, with multiple outlets reporting the departures on Monday.
- All first‑party studios that reported to Duncan will temporarily report to Chief Content Officer Matt Booty while Microsoft searches for a replacement.
- Duncan served about 18–20 months as head of Xbox Game Studios after nearly 14 years leading Rare, and O’Connor joined XGS leadership following the 2025 cancellation of Everwild.
- Microsoft has not given a public reason for the exits; an internal email from Duncan praised recent launches and commended O’Connor’s contributions to the studios.
- The departures come after CEO Asha Sharma announced a strategic reset focused on prioritizing bigger franchises and improving profitability, a shift that industry reporting says could lead to large layoffs and possible studio closures and that readers should watch for in the coming weeks.