Craig Duncan has stepped down from his position as head of Xbox Game Studios, according to reports. Louise O'Connor, chief of staff, has also reportedly departed. The departures come as Xbox reorganizes its leadership structure.

Matt Booty, Xbox's executive vice president of game content and studios, will take on expanded responsibilities overseeing all first-party studios. This consolidation reduces the number of leadership layers between studio heads and top-tier management at Microsoft.

The timing reflects broader shifts at Xbox following the company's massive acquisition spree. Microsoft spent years acquiring studios like Bethesda, Obsidian, Ninja Theory, and Double Fine, creating a sprawling first-party portfolio. Managing that expanded roster required organizational changes.

Duncan's tenure included oversight during the releases of Halo Infinite, Forza Horizon 5, and Starfield. O'Connor worked as chief of staff supporting that leadership. Neither departure has been officially confirmed by Microsoft, though the reports surfaced from credible gaming outlets.

Booty's expanded role positions him as the central figure managing relationships between Microsoft's publishing arm and development studios. He previously oversaw Xbox Game Pass content strategy and studio acquisitions, giving him familiarity with many of the teams now reporting directly to him.

This restructuring aligns with industry consolidation trends. Other publishers like Sony and Embracer Group have similarly streamlined leadership structures following acquisition binges. Flatter hierarchies can accelerate decision-making and reduce overhead, though they also concentrate power in fewer hands.

The change carries implications for how Xbox develops and ships games. Fewer intermediaries between studios and leadership could speed up approvals for projects and budgets. Conversely, Booty's span of control becomes significantly wider, raising questions about bandwidth and attention each studio receives.

Xbox has faced scrutiny over its first-party output cadence. Major releases have