Two senior Xbox Game Studios leaders are stepping down as Microsoft’s gaming division continues to move through a period of major change. Craig Duncan, the head of Xbox Game Studios, is leaving his role, and Chief of Staff Louise O’Connor is also set to depart.
The news was first reported by The Game Business. Duncan told staff that he was proud of the work completed during his time leading Xbox Game Studios, including several strong launches and efforts to support Microsoft’s internal development teams.
Duncan had been in the Xbox Game Studios leadership role for around 20 months. Before that, he spent many years at Rare, where he helped oversee the studio behind Sea of Thieves. O’Connor also came from Rare and moved into the Chief of Staff role after the cancellation of Everwild in 2025.
Microsoft has not yet shared a public reason for the departures. That leaves the timing open to interpretation, especially because Xbox is already facing wider questions about its future structure, studio strategy, and long term business model.
Xbox Game Studios is losing two experienced Rare veterans
Duncan’s exit is notable because he had only been in charge of Xbox Game Studios since late 2024. His role placed him close to Microsoft’s first party studios, which include some of Xbox’s most important teams and franchises.
In his message to staff, Duncan said his goal was to serve the studios, support the people making games, strengthen culture, and help shape the future of the business. He also said the teams delivered many strong launches that helped the company.
O’Connor’s departure is also important because she held a senior operational role. As Chief of Staff, she worked across studio leadership and helped support internal teams. Duncan described her as a thoughtful and trusted partner who supported studios with clarity and care.
| Person | Recent Xbox role | Earlier role | Current status |
|---|---|---|---|
| Craig Duncan | Head of Xbox Game Studios | Rare studio leader | Stepping down |
| Louise O’Connor | Chief of Staff at Xbox Game Studios | Rare veteran and Everwild executive producer | Stepping down |
The exits come during a tense period for Xbox
The departures arrive as Xbox appears to be preparing for more internal changes. Microsoft has recently been discussing the need to make Xbox more sustainable, improve efficiency, and rethink parts of the business.
There have also been reports about possible studio closures, restructuring, and pressure on teams whose recent projects did not meet expectations. That does not mean Duncan and O’Connor are leaving for negative reasons, but the timing makes their exits feel more significant.
Xbox had a strong showcase recently, with many games announced or updated. Even so, the conversation around the brand has quickly shifted back to leadership changes, business pressure, and possible cuts.
Microsoft still needs clarity around Xbox’s next phase
Leadership changes are normal in any large company, but Xbox is not in a normal moment. The division is trying to define what its future looks like across consoles, PC, cloud, Game Pass, and multiplatform releases.
That makes every senior departure more closely watched. Xbox needs stable leadership if it wants to support its studios, manage costs, and deliver games at a stronger pace. It also needs to reassure players and developers that its first party strategy remains clear.
For now, Microsoft has not announced who will replace Duncan or whether O’Connor’s position will be filled in the same way. Until that happens, the departures leave another open question around Xbox Game Studios.
The key point is that two experienced leaders are leaving at a time when Xbox is already changing. The next appointments will matter because they may show what kind of studio culture and business direction Microsoft wants to build from here.
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