It has been a truly crazy two weeks at Microsoft, and particularly at Xbox. Firstly, due to the ground-breaking revelations about the company's future in terms of its games, particularly the announcement that Gears of War: E-Day would be exclusive to the Xbox ecosystem, as would Clockwork Revolution. Shortly after the summer events, Asha Sharma and Matt Booty announced that a major operational restructuring would be necessary to secure the company's future, with the aim of making it number one by 2030.
This is where alarm bells began to ring, particularly when, just a few days ago, The Information claimed to have reports of a possible split between Microsoft and Xbox, and even a partial sale of the division. Whilst this information has not been officially confirmed, today's news seems to tie certain points together in the chain of events. According to The Game Business, the former head of Xbox Game Studios, Craig Duncan, has resigned after just 18 months in the role. The head of staff at Xbox Game Studios, Louise O'Connor, has also resigned.
Duncan had been with Xbox since 2011 and is best known for having served as director at Rare for 14 years. He succeeded Alan Hartman in the role in November 2024, and his role was to oversee The Coalition, Halo Studios, Flight Sim, Turn 10, Playground Games, Rare, Obsidian, Ninja Theory, Compulsion Games, The Initiative, Double Fine, InXile, Undead Labs, World's Edge, and XGS Publishing. O'Connor, a veteran at Rare since 1999, when she began animating the Nintendo 64 title Conker's Bad Fur Day, has since been involved in countless projects, until she left the studio following the cancellation of Everwild. Last September, she took up the role she is now leaving.
According to the report, Duncan has sent an internal email to staff, in which she wrote the following:
"When I took the helm at XGS 20 months ago, my aim was to serve our studios, our teams and the people who create our games. Together, we set out to deliver high-quality games, strengthen the corporate culture across our studios, and help shape the future of the company. I am proud to say that we achieved many flawless launches that drove the company's commercial success. (...) Louise has been an attentive, creative and trusted partner who has always championed excellence and supported our studios with clarity and dedication. I thank her for all she has contributed to XGS and am confident she will succeed in whatever she undertakes."