Microsoft Xbox Game Studios sees leadership resignations amid restructuring

Craig Duncan, head of Xbox Game Studios, resigned after just 18 months in the role, and Louise O'Connor, the studio's head of staff, also stepped down. Duncan, a Microsoft veteran since 2011 and former Rare director, had succeeded Alan Hartman in November 2024 and oversaw studios including The Coalition, Halo Studios, and Obsidian. O'Connor, a Rare veteran since 1999, left after the cancellation of Everwild.

Their departures come as Microsoft announced a major operational restructuring aimed at making Xbox the number‑one gaming platform by 2030. The plan includes limiting new exclusives to titles such as Gears of War: E‑Day and Clockwork Revolution while focusing investment on flagship franchises like Halo, Fallout and The Elder Scrolls. CEO Satya Nadella stressed that after 25 years of investment the division must become a sustainable business, hinting at a possible spin‑off, joint venture, or sale.

Executives Asha Sharma and Matthew Ball outlined a 100‑day review to align hardware and publishing, acknowledging rising costs in chips and cloud services. An internal email from Duncan praised O'Connor, stating, “When I took the helm at XGS 20 months ago, my aim was to serve our studios, our teams and the people who create our games.” The resignations and strategic shift underscore a pivotal moment for Xbox’s future direction.