Xbox exodus: head of Microsoft’s game studios leaves

A week ago, Microsoft’s Xbox gaming division was still hopeful that it would be able to get the problems of the last few months and years under control. With the departure of the head of the company’s own game studios, the situation is getting darker surprisingly quickly.

Head of games publishing is stepping down this week

Craig Duncan, who as head of Xbox Game Studios was previously responsible for publishing titles developed by Microsoft’s own game studios, has announced his departure. In an email to employees, he announced that he would be leaving the company this week. Duncan only took the place of the previous Chief of Xbox Game Studios Alan Hartman in November 2024. When he came to lead the teams behind Xbox Game Studios 20 months ago, his job was to serve the studios and the people involved in game development, Duncan said in his statement The Game Business quoted email to the staff.

Duncan insists on his own successes

Together they managed to shape the future of the business area and create high-quality games. The manager further claimed that it was possible to carry out many “error-free launches” that brought the company economic success. However, Duncan did not provide any information about the reasons for his departure. With the departure of Craig Duncan, Microsoft’s various game studios, which include Rare, Playground Games, Halo Studios and The Coalition, will temporarily report directly to Xbox Chief Content Officer Matt Booty. Booty himself also worked as head of Xbox Game Studios for Microsoft’s game publishing arm. Along with Duncan, Louise O’Connor is also leaving her position as Chief of Staff at Xbox Game Studios.

Like Duncan, O’Connor came to Microsoft with the acquisition of Rare. With the departure of two such high-ranking people, the situation in Microsoft’s gaming division is obviously becoming increasingly dire. While the new boss spoke of a “reset” of the division within 100 days, it is also becoming apparent that Microsoft could lay off game developers on a large scale. In addition, one should even think about a sale, a spin-off or at least a fundamental restructuring of the Xbox division.