Xbox Game Studios head Craig Duncan steps down

Craig Duncan has resigned as head of Xbox Game Studios after less than two years. He will depart the company this week.

Craig Duncan took over the role in 2024 after the retirement of Alan Hartman. He previously led Rare since 2011, overseeing Sea of Thieves and other projects.

In his email to staff, Duncan wrote that his purpose was to serve the studios and deliver high-quality games. He also praised chief of staff Louise O'Connor, who is leaving alongside him.

Xbox Game Studios teams will now report to chief content officer Matt Booty until a replacement is found. The departures occur as Xbox undergoes leadership changes under Asha Sharma, including budget adjustments and staff reductions.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Xbox CEO Asha Sharma and Xbox Game Studios Head Matt Booty emailed employees on June 10 with a blunt message that current operations cannot continue. The note outlined five harsh realities facing the division, including low profits and rising costs. Bloomberg separately reported that major layoffs are planned for next month.

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Xbox is preparing to shut down Compulsion Games and is in talks to close Double Fine and Ninja Theory as well. Studio leaders are negotiating with Microsoft over the studios' futures. Heavy job losses are expected even if some studios go independent.

Obsidian Entertainment is cutting 60 to 70 positions, roughly a quarter of its workforce, as part of broader Xbox restructuring announced earlier this week.

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Microsoft's communications lead addressed claims that recent Xbox layoffs aimed to replace American workers with foreign hires. The company cut over 3,000 positions to restructure the division.

Double Fine has laid off 23 employees as the studio transitions to independence following its separation from Xbox. The move comes amid broader restructuring at the publisher.

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A new report has described an atmosphere of uncertainty and fear among remaining staff at Xbox following recent restructuring by Microsoft.

 

 

 

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