Xbox Game Studios head and chief of staff step down

Craig Duncan has stepped down as head of Xbox Game Studios after just over a year-and-a-half in the role. He led Sea of Thieves developer Rare for nearly 13 years before his promotion in 2024, which placed Microsoft's studios—including Double Fine, Halo Studios, inXile, Obsidian, Playground Games and The Coalition—under his stewardship.

Louise O'Connor, Xbox Game Studios chief of staff, has also resigned. O'Connor joined Rare in 1999 as an animator and was promoted to chief of staff in August last year.

The departures come as Xbox's new leaders, Asha Sharma and Matt Booty—who took over after Phil Spencer retired earlier this year—begin what they have called an "Xbox reset." In an open letter last week, Sharma and Booty said that Xbox's studio acquisitions have left it "over extended."

Bloomberg says "significant" layoffs are being planned; word is that award-winning Compulsion Games may be on the chopping block, and Double Fine, Ninja Theory and others are reported to be at risk.

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