Two Xbox executives have announced their departures this week as the company undergoes significant transformations, including declining revenue, a pivot back to exclusive games, and rethinks around Project Helix. The uncertainty has grown with reports of expected layoffs later this month and claims that Xbox could become a separate subsidiary under Microsoft.
High-Profile Exits
According to The Game Business, Xbox Game Studios boss Craig Duncan will leave Microsoft after 18 months in the role. Duncan joined in November 2024, overseeing first-party developers like Halo Studios, The Coalition, and Ninja Theory. His history with Xbox dates back to 2011 when he joined Rare as a senior studio director, leading the company for 14 years through the Kinect era and the launch of Sea Of Thieves.
In an email to staff, Duncan wrote: 'When I stepped into the role of leading [Xbox Game Studios] 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.'
Louise O'Connor, a former Rare colleague promoted to chief of staff at Xbox Game Studios in August 2025 after the cancellation of Rare's Everwild, is also leaving Microsoft.
Reasons for Resignations
While the reasons for these resignations remain unclear, they are likely connected to the reported layoffs. Current rumors suggest layoffs across the entire Xbox division could number in the thousands and include at least one whole studio, possibly Rare, which would explain these departures. Following Duncan's exit, Xbox's first-party studios will report to chief content officer Matt Booty until a replacement is found.
In the same email about O'Connor's departure, Duncan added: 'Louise has been a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care. I'm grateful for everything she's brought to [Xbox Game Studios], and I'm sure she'll be successful in whatever comes next for her.'
