Xbox Game Studios Head and Chief of Staff Depart Amid Reported Restructuring

Craig Duncan, the head of Xbox Game Studios, is departing the company after 15 years at Microsoft. Accompanying his departure is Louise O'Connor, chief of staff for Xbox Game Studios.

These leadership changes precede reported layoffs and potential studio closures within Xbox. Xbox CEO Asha Sharma has reportedly vowed to "reset" the Xbox business amidst these developments.

Duncan was previously the studio head at Rare, known for *Sea of Thieves*, before being promoted to Head of Xbox Game Studios in November 2024. He succeeded Matt Booty, who advanced to executive vice president and chief content officer at Xbox. Duncan's career also includes roles as a development manager and director of product development for Codemasters, and an executive team position at Midway Games until its closure in 2009. He worked at Sumo Digital before joining Rare in 2011.

Louise O'Connor had a long tenure with Rare, starting as an animator in 1999. She rose to Head of Animation and then Art Director before becoming chief of staff for Xbox Game Studios in August 2025.

In a memo to staff obtained by The Game Business, Duncan stated, "I’m proud to say we delivered many flawless launches that drove business success for the company." He also acknowledged O'Connor, noting she "consistently championed the craft and supported our studios with clarity and care."

Microsoft CEO Satya Nadella recently commented on Xbox's ongoing struggles, emphasizing the need for Microsoft to transform it into a "sustainable business." Reports have also suggested that Microsoft might consider spinning off Xbox and accelerating the development of future *Halo* and *Fallout* games.

According to GameSpot, Duncan's departure was reported just 48 hours after he expressed excitement for the future of Xbox Games Studios and its projects on LinkedIn.