Xbox Games Studios head Craig Duncan and chief of staff Louise O'Connor have reportedly departed Microsoft. Following their exits, the studios previously under Duncan's purview will now operate directly under Xbox chief content officer Matt Booty until new leadership is appointed.
Duncan had held the top position at Xbox Games Studios for approximately 20 months, while O'Connor served in her role for less than a year. These departures come shortly after reports surfaced indicating Microsoft's gaming division is preparing for further layoffs, a move foreshadowed by new CEO Asha Sharma's comments regarding a necessary "reset" for the business.
In a staff memo obtained by The Games Business, Duncan reflected on his tenure, stating, “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." He also acknowledged O'Connor as "a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care."
Both Duncan and O'Connor are veterans of Rare Ltd. Duncan led the studio for 14 years, beginning in 2011, during which time Rare released a reboot of Killer Instinct, explored projects involving the Kinect peripheral, and launched the game Sea of Thieves. O'Connor had a longer history at Rare, starting as an animator in 1999 on the Nintendo 64 title Conker's Bad Fur Day. She also served as a producer on the unreleased game Everwild.
While the official statements on Duncan's departure emphasize a positive conclusion to his tenure, the timing and abrupt nature of these exits suggest a potential shift in strategic direction or dissatisfaction with the current course within Microsoft's gaming division.