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Xbox Game Studios Chief Craig Duncan Departs Microsoft Amid Growing Concern Over Layoffs and Possible Studio Shutdowns

The move comes as Xbox teams brace for another round of layoffs and possible studio closures after a company reset, The Game Business reported.

  • Head of Xbox Game Studios Craig Duncan is stepping down this week, along with chief of staff Louise O'Connor; both executives previously led the British studio Rare for over a decade.
  • These exits follow a memo from Xbox CEO Asha Sharma and chief content officer Matt Booty discussing a business "reset" after revenue declines, asserting Xbox was "over extended" with "we have not adequately funded them to compete and win."
  • Reports indicate Xbox is preparing for mass layoffs next month, and analysts told IGN that "the studios most exposed are brilliant for prestige and rotten for the spreadsheet" as leadership attempts to improve the division's balance sheet.
  • Following the departures, Xbox's first-party studios including Halo Studios and Ninja Theory will report directly to Booty until a replacement is appointed to lead the division.
  • Microsoft CEO Satya Nadella emphasized the need for a sustainable business model after 25 years of Xbox investment, as the company reassesses its investment priorities for the next 5 years.
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thegamebusiness.com broke the news on Monday, June 15, 2026.
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