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Xbox Game Studios Faces Leadership Shake-up, Layoffs Loom
15 Jun
Summary
- Xbox Game Studios leader Craig Duncan is stepping down this week.
- Xbox leadership cites 'reset' due to declining revenue and high costs.
- Microsoft's gaming division prepares for significant layoffs after June 30.
Xbox Game Studios is undergoing a significant leadership change and is poised for another wave of layoffs. Craig Duncan, head of Xbox Game Studios since October 2024, is departing this week, marking the third leader in two years for the division. His teams will temporarily report to Matt Booty, Xbox's chief content officer.
This transition occurs as Xbox executives acknowledged a business 'reset' is necessary due to decreased revenue and rising component costs. They admitted the company was 'over extended' from studio acquisitions without adequate funding for them to succeed.
Mass layoffs are anticipated after Microsoft's fiscal year concludes on June 30. This follows earlier cuts in early 2024 and July 2025 that impacted the gaming division, leading to game cancellations and studio closures.
Microsoft CEO Satya Nadella emphasized the need for innovation in both hardware and games to ensure economic viability and transform Xbox into a sustainable business after 25 years of investment.
