Xbox Game Studios Leadership Shakeup: Craig Duncan and Others Depart

Following hints from new Xbox CEO Asha Sharma regarding upcoming structural changes, the division is seeing a significant exodus of senior leadership. Craig Duncan, the Head of Xbox Game Studios, has confirmed he is stepping down from his role. Duncan, who previously served as the Studio Head of Rare from 2011 until November 2024, held the XGS leadership position for 20 months.
- Craig Duncan: Departing Head of Xbox Game Studios.
- Louise O'Connor: Departing Chief of Staff for Xbox Game Studios.
- Mark Gordon: Stepping down as Treyarch Studio Head after 22 years.
- Potential Spin-offs: Compulsion Games, Double Fine, and Ninja Theory are reportedly negotiating to go independent.
In an email to staff, Duncan reflected on his tenure, stating, "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 noted that he was proud of delivering "flawless launches" during his time leading the division.
Alongside Duncan, Louise O'Connor, the chief of staff for Xbox Game Studios, is also departing. Duncan described O'Connor as a "thoughtful, creative, and trusted partner" in his outgoing message. These exits are part of a broader sequence of personnel changes occurring across the organization this summer.
Leadership Changes Extend to Treyarch
The wave of departures is not limited to Xbox Game Studios. Mark Gordon, the long-time Studio Head of Treyarch and a central figure in the Black Ops series, has also stepped down. Gordon spent 22 years at the studio. Microsoft has moved to fill the vacancy with internal promotions, naming Kevin Hendrickson and Yale Miller as his replacements.
Uncertain Future for Acquired Studios
Internal uncertainty is mounting regarding the status of several studios acquired during Phil Spencer's tenure as Xbox CEO. While titles like South of Midnight have earned awards, reports from Bloomberg’s Jason Schreier suggest that Compulsion Games, Double Fine, and Ninja Theory are currently in active negotiations to spin off from Microsoft to become independent. These discussions arrive as employees face concerns over potential job losses, even if the spin-offs proceed.
The situation at Arkane remains similarly strained. Following the closure of the Austin studio after the release of Redfall, questions persist regarding the future of Arkane Lyon, which has been working on Marvel's Blade since its 2023 announcement. These developments follow a year that already saw Microsoft implement a 4% workforce reduction, which led to the cancellation of projects including Everwild, a Perfect Dark reboot, and an unannounced ZeniMax MMORPG.