Xbox Game Studios Leaders Depart
45sHigh-profile departures of top Xbox executives spark speculation about the future of Xbox Game Studios.
▶ Play ClipTwo senior Xbox Game Studios leaders, Craig Duncan and Luis Okonor, are departing Microsoft after decades at the company, including long tenures at Rare. Meanwhile, reports indicate that Compulsion Games, the developer behind South of Midnight, is being shut down with over 90 staff layoffs.
Head of Xbox Game Studios Craig Duncan and chief of staff Luis Okonor are leaving after decades at Microsoft. Both previously served long tenures at Rare, with Duncan heading the studio for over 10 years.
No reason was provided for their joint exit, but it comes amid concerns over Xbox Game Studios' slim profit margins and potential layoffs.
A Bloomberg report signals layoffs could happen as soon as next month, with smaller teams like Double Fine and Turn 10 Studios particularly at risk.
Microsoft is reportedly planning to shut down Compulsion Games, developer of South of Midnight and We Happy Few, with layoffs potentially exceeding 90 staff.
South of Midnight launched in April 2025 to critical acclaim but failed to find a significant audience, releasing on PlayStation 5 and Nintendo Switch 2 in March.
The departures and reported studio closure signal significant turmoil within Xbox Game Studios, with potential layoffs looming and concerns over the division's profitability.
"Title accurately reflects the departures and studio shutdown reported in the video."
Who are the two senior Xbox Game Studios leaders departing?
Craig Duncan and Luis Okonor.
0:29
Which studio did Craig Duncan head for over 10 years?
Rare.
0:38
What is the reported reason for the departures?
No reason was given, but it comes amid concerns over Xbox Game Studios' slim profit margins.
1:19
Which developer is reportedly being shut down by Microsoft?
Compulsion Games.
1:51
How many staff layoffs are reported at Compulsion Games?
More than 90.
1:58
What game did Compulsion Games develop that launched in April 2025?
South of Midnight.
2:05
On which platforms did South of Midnight launch?
PlayStation 5 and Nintendo Switch 2.
2:15
Senior Xbox Leaders Depart
Highlights a significant leadership change at Xbox Game Studios.
0:29Layoffs Imminent
Indicates potential job losses affecting smaller studios.
1:34Compulsion Games Shutdown
Reports of a studio closure shortly after a game launch.
1:51[00:00] What's up everybody? Damon here and for
[00:01] today's daily fix, we have two Xbox game
[00:04] studios leaders depart and a firstparty
[00:06] Xbox developer is reportedly shut down.
[00:08] This is your daily fix.
[00:20] Presented by Universal Orlando Resort
[00:22] and its newest theme park, Universal
[00:23] Epic Universe.
[00:27] Two of Microsoft's most senior managers
[00:29] overseeing Xbox Game Studios are
[00:30] reportedly departing the business. Head
[00:32] of Xbox Game Studios Craig Duncan and
[00:34] chief of staff Luis Okconor are leaving
[00:36] Xbox after decades at the firm. Both
[00:38] previously served long tenures at
[00:40] celebrated British studio Rare, which
[00:42] Duncan headed up for more than 10 years.
[00:44] Duncan wrote in an email announcing his
[00:46] departure, "When I stepped into the role
[00:47] of leading XGS 20 months ago, my purpose
[00:50] was to serve our studios, our teams, and
[00:52] the people making our games. Together,
[00:54] we set out to deliver high-quality
[00:55] games, strengthen the cultural fabric
[00:57] across our studios, and help shape the
[00:59] future of the business. I'm proud to say
[01:01] we deliver many flawless launches that
[01:02] drove business success for the company.
[01:04] Louise has been a thoughtful, creative,
[01:06] and trusted partner who has consistently
[01:08] championed the craft and supported our
[01:09] studios with clarity and care. I'm
[01:11] grateful for everything she's brought to
[01:12] XGS, and I'm sure she'll be successful
[01:14] in whatever comes next for her. The
[01:16] departures were first reported today by
[01:17] the game business. No reason was given
[01:19] for their joint exit, though it comes at
[01:20] a time of intense concern for the future
[01:22] of Xbox Game Studios and its staff after
[01:24] a dire warning from new Xbox boss Asha
[01:27] Chararma over the division's slim profit
[01:29] margin. Chararma's comments have been
[01:30] taken by many as a public warning that
[01:32] job losses are imminent and indeed a
[01:34] Bloomberg report signal that layoffs
[01:35] would happen as soon as next month. Fans
[01:37] are particularly concerned over the fate
[01:38] of several smaller teams such as Double
[01:40] Fine and the already downsized Turns 10
[01:42] Studios. One analyst said, "The studios
[01:44] most exposed are brilliant for prestige
[01:46] and rotten for the spreadsheet." And
[01:48] speaking of, Microsoft is reportedly
[01:51] planning to shut down South of Midnight
[01:52] and We Happy Few developer Compulsion
[01:54] Games. It also developed 2013's
[01:56] Contrast. Kitaki reports that the
[01:58] layoffs may total more than 90 staff
[02:00] just months after the Canadian studio
[02:02] was advertising jobs for a new IP.
[02:04] Microsoft has yet to comment. South of
[02:05] Midnight, an action adventure game set
[02:07] in a fictionalized American deep south,
[02:09] launched in April 2025. While it was
[02:11] wellreceived by critics, it failed to
[02:13] find a significant audience. It launched
[02:15] on PlayStation 5 and Nintendo Switch 2
[02:17] in March. Compulsion Games is a Canadian
[02:18] developer founded in 2009. Xbox acquired
[02:21] it in 2018. And that is your daily fix
[02:23] for Monday, June 15th. Now that you're
[02:25] caught up on the news, check out this
[02:26] exclusive boss fight gameplay from Final
[02:28] Fantasy Residence. I'm Damon Hatfield.
[02:30] And for all your video game news, stay
[02:31] tuned to IGN.
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