XBOX Game Studios Head Craig Duncan Steps Down; Matt Booty Takes Interim Oversight

Another major leadership shake-up at XBOX. Just days after reports about upcoming layoffs and XBOX CEO’s comments about trying radically different business model to bring down Project Helix price in affordable terriority, XBOX Game Studios head Craig Duncan has announced that he is stepping down from the role after more than 18 months leading Microsoft’s first-party studios.

His departure takes effect this week, with XBOX Chief Content Officer Matt Booty assuming oversight of the division until a successor is appointed.

XBOX Games Studio’s leadership is changing again

Duncan took over XBOX Game Studios in November 2024, succeeding Alan Hartman and overseeing an extensive portfolio that includes Halo Studios, Playground Games, Rare, Obsidian Entertainment, Ninja Theory, Compulsion Games, The Coalition, Turn 10 Studios, Double Fine, and more.

A longtime XBOX veteran, Duncan joined Microsoft in 2011 and spent nearly 14 years leading Rare through the Kinect era and the ongoing success of Sea of Thieves. His exit also comes alongside the departure of XBOX Game Studios chief of staff Louise O’Connor from her role. O’Connor joined Rare in 1999 and worked across multiple creative and production roles before moving into XBOX leadership in 2025 following the cancellation of Everwild.

In an internal memo sent to staff and seen first by Game Business, Duncan reflected on his tenure: “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.” He added, “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.”

Speaking about O’Connor’s departure from the role, Duncan said, “Louise has been a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care.” With several high-profile projects in development across Xbox’s studios and broader changes unfolding inside Microsoft’s gaming division, attention now turns to who will lead XBOX Game Studios into its next chapter.