Xbox Game Studios Leader Steps Down Amid Upcoming Layoffs

Craig Duncan is stepping down from his position as head of Xbox Game Studios, as reported by an outlet. He held this role for less than two years, having previously led Rare, the studio behind Sea of Thieves, for over a decade. This change comes as Xbox teams prepare for another wave of layoffs and potential studio closures following new CEO Asha Sharma’s announcement of a company “reset” last week.

Duncan oversaw a diverse array of game studios, including Halo Studios, The Coalition, Double Fine, and Undead Labs. His leadership was pivotal in launching major titles like the upcoming Fable, while also steering the company’s strategy regarding exclusives and multiplatform releases. Moving forward, Xbox Game Studios will report to chief content officer Matt Booty.

In an email to staff, Duncan expressed, “When I stepped into the role of leading XGS 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.”

Recently, Xbox has indicated plans to allocate more resources to its major franchises while scaling back on less profitable areas. “We are the fortunate stewards of industry-defining franchises that have enormous potential and player demand, but we have not adequately funded them to compete and win,” Sharma told staff last week. “At the same time, as we saw this past weekend at Showcase, a reliable pipeline of first- and third-party exclusives and new IP are critical to our success. We need to reassess the balance between these and our investment priorities for the next 5 years.”

Additionally, Louise O’Connor, chief of staff at Xbox Game Studios, is also reportedly stepping down. She was previously an executive producer at Rare until the cancellation of the long-awaited fantasy game Everwild during the company’s last round of significant cuts.

Xbox has not provided a comment on these developments.