Two Xbox executives have announced they’re leaving the company this week, as the company continues to undergo drastic changes.
Between the admission of declining revenue, the pivot back to exclusive games, and rethinks around Project Helix, it’s clear major changes are happening at Xbox.
The uncertainty around the company has only grown over the past few days, with reports of expected layoffs at Xbox later this month and claims the company could become a separate subsidiary under Microsoft.
Now, two senior executives at Xbox have announced they’re leaving the company, in what could be the start of many high-profile exits.
As reported by The Game Business, Xbox Game Studios boss Craig Duncan will leave Microsoft this week after 18 months in the role. Duncan took on the role in November 2024, where he oversaw Xbox’s first party developers like like Halo Studios, The Coalition, and Ninja Theory.
Duncan’s history with Xbox goes back to 2011 when he joined developer Rare as a senior studio director. He oversaw the company for 14 years across the Kinect era and the launch of Sea Of Thieves.
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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.’
Duncan’s former colleague at Rare, Louise O’Connor, is also leaving Microsoft. She was previously promoted to chief of staff at Xbox Game Studios in August 2025, following the cancellation of Rare’s Everwild.
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.’
It’s unclear what sparked these resignations, but it’s likely they’re connected to the reported layoffs in some capacity, perhaps in the sense that Duncan and O’Connor didn’t want to oversee them.
Currents rumours expect layoffs, across the whole of the Xbox division, to be in the thousands and to include at least one whole studio. It’s not impossible to imagine that could include Rare, which would explain these departures.
Following Duncan’s exit, Xbox’s first party studios will report to Xbox chief content officer Matt Booty until a replacement is found.
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