Xbox is in a state of flux as the company is seeing changes made at nearly every level. Recently, the news broke that Xbox will be seeing a “Radically Different” business model soon enough, and this headline was followed up by Xbox’s CEO, Asha Sharma, indicating layoffs are coming in July. Today, a new report stated two major figures at Xbox are departing the company as these aforementioned layoffs loom in the shadows.
A Leadership Shake Up
According to a new report from Christopher Dring of The Game Business, Chief of Staff, Louise O’Connor, will be leaving the company, and the Xbox Game Studios Boss, Craig Duncan, will be stepping down from his role after being in that role for just 20 months.
Following Duncan’s exit, it is said that Xbox Chief Strategy Officer Matt Booty will oversee the department until the company completes its search for a replacement. Duncan was largely responsible for overseeing several studios, including Halo Studios, The Coalition, Turn 10, and Playground Games. He has been with the company since 2011 and has spent most of his time as the lead of Rare. Louise O’Connor has been a part of Rare since 1999 and became Chief of Staff at Xbox Game Studios in September 2025. And upon hearing the news that O’Connor was departing, Craig Duncan spoke on both O’Connor’s and his work during their time at Xbox.
“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.”
Still More to Come
The bad news continues to compile around Xbox after what has been a rather positive few months. Departures like this are often a bad look and may indicate that there is more trouble brewing behind the scenes over at Xbox. The rumors that surround the wave of layoffs that are going to hit next month are worrying, especially when you factor in what studios may be impacted. And it is safe to assume it will only get worse before things get better for Xbox.
