Head of Xbox Game Studios and Chief of Staff Leave the Company Amid Restructuring Rumors

by Taha June 15, 2026 12:44 pm in News

Xbox is facing a difficult period despite the excitement surrounding the recent Xbox Games Showcase. In recent weeks, reports have suggested that layoffs and other major changes could be coming to the company.

Some rumors have even claimed that Microsoft may eventually separate Xbox from the rest of its business.

Those reports have now gained even more attention following the departure of two senior Xbox executives.

Xbox Loses Two Key Executives as Restructuring Rumors Continue

Craig Duncan xbox

According to The Game Business, Xbox Game Studios head Craig Duncan and chief of staff Louise O’Connor have both decided to leave the company.

Duncan joined Xbox in 2011 and spent more than 13 years leading Rare, where he oversaw projects such as Sea of Thieves and Kinect. In November 2024, he became head of Xbox Game Studios, taking responsibility for teams including Halo Studios, The Coalition, Turn 10, Playground Games, Rare, Obsidian, Ninja Theory, Compulsion Games, The Initiative, Double Fine, InXile, Undead Labs, World’s Edge, and XGS Publishing.

In his farewell email, Duncan did not explain why he was leaving. He simply said, “I’m proud to say we delivered many flawless launches that drove business success for the company.”

It’s worth noting that Matt Booty will take over his duties for now.

O’Connor is also a long-time Rare employee. She joined the studio in 1999 and worked on several projects over the years. She later became Xbox’s chief of staff in September 2025.

The timing of these departures has attracted attention because Xbox is preparing major changes. More news regarding Xbox and its restructuring efforts is expected in the coming days, with reports suggesting the changes could have a major impact on both company staff and internal development studios.

In other news. Microsoft CEO Satya Nadella says Xbox must become a sustainable business, admitting that YouTube monetizes Xbox games more than they do.

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Tags: layoffs Xbox
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Taha

Television kills your vision.



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