Craig Duncan, the current head of Xbox Game Studios, has just announced his departure from the company. Duncan took over the position of Xbox Game Studios Head in November 2024, but is now leaving the company after 19 months in the role. Xbox Game Studios Chief of Staff Louise O’Connor is also leaving the company.
Though they’re not necessarily connected, these major Xbox leadership shake-ups come just five days after an internal letter from Xbox CEO Asha Sharma was posted online. Along with stating that Xbox has invested over $20 billion over the last five years but that its annual revenue has “declined nearly half a billion” during that same timeframe, Asha Sharma’s recent letter discussed the need for an “Xbox reset.” This phrasing, and some internal rumblings, resulted in several industry insiders claiming that significant layoffs are set to hit the gaming company at the start of July.
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Xbox Game Studios Head and Chief of Staff Announce Their Exit
In an email written to Xbox staff (obtained and first reported on by TheGameBusiness), Xbox Game Studios Head Craig Duncan announced his departure from the company. This internal email contained the following statement from Duncan:
“When I stepped into the role of leading XGS 20 months ago, my purpose was to serve our studios, our teams, and the people making our games. Together, we set out to deliver high-quality games, strengthen the cultural fabric across our studios, and help shape the future of the business. I’m proud to say we delivered many flawless launches that drove business success for the company.”
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Craig Duncan has a had a long and storied history in the video game industry, beginning his career as a development manager at Codemasters in 2002. After five years at Codemasters, Duncan was hired as the studio head of Midway Games’ North East England studio, where he worked for almost two years. After Midway’s bankruptcy, Duncan then joined Sumo Digital as a development director, and in 2011, Duncan joined Rare, where he remained for almost 14 years. In Duncan’s absence and until a replacement is appointed, all developers under the Xbox Game Studios banner will report to Xbox Chief Content Officer Matt Booty.
In that same email, Craig Duncan confirmed that Xbox Game Studios Chief of Staff Louise O’Connor is also leaving the company. In the email, Duncan called O’Connor “a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care.” O’Connor has been in the gaming industry even longer than Duncan, having joined Rare in 1999. O’Connor continued to work at Rare in various roles over the course of 26 years, but became Xbox Game Studios’ Chief of Staff in August 2025 after the cancelation of Everwild, Rare’s fantasy action-adventure game.
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Xbox/Microsoft is yet to make any kind of official statement regarding these departures, and neither Craig Duncan nor Louise O’Connor have made public statements at the time of writing. The reasoning behind their departures is currently unclear.
