Xbox Games Studios boss Craig Duncan and chief of staff Louise O'Connor have departed Microsoft, marking another leadership shake-up at the gaming division. The exits come days after Xbox chief Sarah Bond called for a company "reset" to address underperformance and organizational issues.
Duncan oversaw multiple major studios including Bethesda and Obsidian Entertainment, making his departure a significant structural change. Responsibility for those studios now transfers to Matt Booty, Xbox's chief content officer, until a permanent replacement arrives. Booty already manages creative direction across Xbox's portfolio, so this consolidation expands his authority substantially.
O'Connor's departure as chief of staff removes another layer from Duncan's former operation. Neither executive has publicly commented on the departures, and Microsoft has not disclosed severance terms or stated whether these were voluntary exits or forced departures.
The timing matters. Bond's "reset" statement signaled internal frustration with Xbox Games Studios' output and organizational efficiency. The studio has faced criticism for delayed releases, canceled projects, and a perception that Microsoft's first-party titles haven't matched PlayStation's cadence. High-profile struggles with Redfall's launch and ongoing work on Starfield updates have intensified pressure on leadership.
This restructuring follows Xbox's broader consolidation of gaming operations. Microsoft integrated Activision Blizzard into its structure after that acquisition, creating complexity that executives have worked to resolve. Bond's reset language suggested the company needed faster decision-making and clearer accountability for game delivery.
The immediate impact falls on production schedules. Booty now juggles creative oversight for all major studios plus direct operational control of Duncan's former domain. That workload typically requires a dedicated executive, suggesting Microsoft is evaluating whether the combined role is sustainable long-term or if this is temporary until a new hire arrives.
For studios like Bethesda, Obsidian, Double