Xbox Game Studios Leaders Depart Amid Layoff and Studio Closure Concerns
Craig Duncan, Head of Xbox Game Studios, and Chief of Staff Louise O'Connor have departed Microsoft's Xbox division after decades with the company. Their exit coincides with growing industry concerns regarding potential job losses and studio shutdowns within Xbox Game Studios. This follows new Xbox boss Asha Sharma's comments highlighting the division's slim profit margins, which many interpret as a warning of imminent layoffs. Both Duncan and O'Connor previously served long tenures at the British studio Rare.
Two of Microsoft's most senior managers overseeing Xbox Game Studios, Craig Duncan and Louise O'Connor, have reportedly left the company. Duncan served as Head of Xbox Game Studios, and O'Connor held the position of chief of staff. Both executives had careers spanning decades at Microsoft and its affiliated studios, including significant time at the acclaimed British studio Rare.
Duncan joined Rare in 2011 and led the company through its period known for titles such as Kinect Sports, eventually overseeing the launch of the successful game Sea of Thieves. O'Connor's service at Rare began in 1999 as an animator and she later led the development of the now-canceled fantasy RPG project, Everwild.
The departures, initially reported by The Game Business, occur during a period of heightened concern for the future of Xbox Game Studios and its employees. These concerns stem from comments made by new Xbox boss Asha Sharma regarding the division's slim profit margin. Many have interpreted Sharma's statements as a public warning of impending job losses, with a Bloomberg report indicating that layoffs could occur as early as next month.
Fans and analysts are particularly apprehensive about the fate of several smaller development teams that have not released major hit games in recent years. These include Compulsion Games, known for South of Midnight; Double Fine, creators of Kiln and Keeper; and the already downsized Turn 10 Studios.
In an email announcing his departure, published by The Game Business, Duncan stated that his purpose was to serve the studios, teams, and game creators. He expressed pride in delivering "many flawless launches that drove business success for the company." Duncan also commended O'Connor as a "thoughtful, creative, and trusted partner."
In the interim, Xbox Game Studios leaders will report directly to Xbox chief content officer Matt Booty. Video game analysts informed IGN last week that studio shutdowns and the introduction of ad-funded Xbox Game Pass subscriptions are potential measures as Sharma aims to improve Xbox's balance sheet.
According to IGN, one analyst commented that some studios, while providing prestige, may not be financially viable.
(Source: IGN)
