Since Asha Sharma took over as the new leader of Xbox, the brand has made and continues to consider many changes, including looking back at console exclusives in a sort of reset for the entire brand. With that “Xbox Reset,” a lot of speculation grew on the internet, with the biggest question being whether this reset meant layoffs. Well, today, some of that speculation seemed not to be that far off.
In a report today from The Game Business, the head of Xbox Game Studios, Craig Duncan, has departed the company after 18 months in his role. Duncan has been part of the Xbox brand since 2011, including contributions to overseeing the UK studio Rare with the Kinect and Sea of Thieves projects. Duncan was also one of the leaders for Xbox’s multiplatform strategy, stating that “we want our games to reach the most players that we can” in an interview this past January regarding PS5 ports. A statement that doesn’t seem to be aligned with Sharma’s new vision for the brand, with exclusives now back on the table.
Duncan wasn’t the only one to step off their role today at Xbox, as Xbox Game Studios chief of staff Louise O’Connor is also stepping down from her role. In an email to staff, O’Connor says: “Louise has been a thoughtful, creative, and trusted partner who has consistently championed the craft and supported our studios with clarity and care. I’m grateful for everything she’s brought to XGS, and I’m sure she’ll be successful in whatever comes next for her.” O’Connor was with Rare since 1999, before moving to the Xbox team in 2025 after Everwild’s cancellation.
Additionally, a recent report from Kotaku suggests that Xbox will be closing down some of its studios, one of them being Compulsion Games. These reports come just a few months after the studio won a Peabody Award for South of Midnight. Insider Gaming reached out to some of the employees, with one source mentioning that “We all talked about what it meant for us. No one was confident we’d be ok.” However, an update from Kotaku reveals that the Studio leadership is in negotiations with Microsoft. Hopefully, a resolution that protects these developers will be reached by both parties.
For more Xbox news, stay tuned to GameObserver.
