Just over 18 months after the head of Xbox developer Rare, Craig Duncan, stepped up to lead Microsoft's game publishing wing as head of Xbox Game Studios, he's now stepping down from the position.
The news comes from a new report from The Game Business, which learned of Duncan's departure after getting access to an email sent internally to staff. He plans to leave Xbox Game Studios this week, with Xbox's chief content officer Matt Booty overseeing its developers in the interim while Microsoft searches for a replacement.
Prior to joining Xbox directly in November 2024, Duncan served as Rare's leader for almost 14 years, and helped guide the development of titles like the studio's massive multiplayer hit Sea of Thieves. He's also worked in several other UK-based game teams, including Codemasters, Midway Games, and Sumo Digital.
He then went on to manage and direct the 30+ development teams under Xbox's umbrella, including Halo Studios (Halo), The Coalition (Gears of War), Playground Games (Forza Horizon 6, Fable), InXile Entertainment (Clockwork Revolution), Undead Labs (State of Decay 3), and others.
Notably, it's also been revealed that the publisher's chief of staff, Louise O’Connor, is making an exit from Microsoft and Xbox as well. Like Duncan, she's another veteran of Rare; she worked at the studio from 1999 until 2025 in a wide variety of animation, art, and production roles, though she left it that year to join Xbox Game Studios after Rare's Everwild IP was canceled amid a large wave of layoffs.
In Duncan's internal memo to Xbox Game Studios workers, he wrote the following: "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," he continued. "I’m proud to say we delivered many flawless launches that drove business success for the company."
"Louise has been a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care," he added, on O'Connor. "I’m grateful for everything she’s brought to XGS, and I’m sure she’ll be successful in whatever comes next for her."
These departures come shortly after Xbox and its new CEO Asha Sharma announced imminent layoffs in July and indicated that an "Xbox reset" is coming, signaling that many large changes to the business are coming in the next 100 days. It's unclear if Duncan and O'Connor stepping down are related to these plans.
It's also unclear who will move into their positions moving forward, and it may be some time before Microsoft and Xbox make any final decisions on that front. Eventually, though, time will tell.
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