Xbox Game Studios is losing its top executive less than two years after its last leadership handoff. Craig Duncan is stepping down as head of the Microsoft studio group, and chief of staff Louise O'Connor is also leaving the company.
The Game Business, which says it obtained Duncan's email to staff, reports that Xbox Chief Content Officer Matt Booty will oversee the Xbox Game Studios organization until Microsoft names a replacement. That puts Halo Studios, The Coalition, Turn 10, Playground Games, Rare, Obsidian, Ninja Theory, Double Fine, inXile and other Xbox-owned teams under Booty on an interim basis.
Duncan had only been in the role for about 20 months. He replaced Alan Hartman in November 2024 after leading Rare for nearly 14 years, a run that covered the studio's Kinect period and the growth of Sea of Thieves.
"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."
Another leadership change hits Xbox's studio group
The move lands during a busy stretch for Xbox's first-party business. Microsoft has spent the past year trying to sharpen its studio slate, expand some games beyond Xbox consoles and answer harder questions about the future of Game Pass, hardware and internal spending. Gamers Now recently covered Xbox's wider reset as major layoffs reportedly loomed after a new CEO memo.
That makes the timing notable even though Microsoft has not announced a new Xbox Game Studios head. The organization Duncan is leaving includes many of the teams behind Xbox's most important upcoming releases, from Gears of War: E-Day and Fable to projects from Obsidian, Ninja Theory and Halo Studios.
O'Connor's exit removes another longtime Rare figure from the group. The Game Business reports that she joined Rare in 1999, worked across art and production roles and later became Xbox Game Studios chief of staff after leaving Rare following Everwild's cancellation in 2025. Duncan called her "a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care."
Microsoft has not yet named Duncan's successor. Until it does, Booty becomes the direct reporting line for Xbox Game Studios at a moment when the division is already under pressure to prove what its first-party pipeline can deliver.