According to The Verge, Xbox CEO Asha Sharma confirmed Chiang’s departure in an internal memo circulated on October 23. Sharma acknowledged Chiang’s long tenure at Microsoft and thanked her for her contributions, but did not disclose the reasons behind her exit.
“Helen Chiang is leaving Microsoft today. I’m grateful for her years of service and wish her well,” Sharma wrote in the memo.
Sharma also indicated that the company would provide further information about the future of the COO position once its plans had been finalised. In the meantime, Chiang’s responsibilities are expected to be distributed among other senior Xbox executives, although Microsoft has yet to announce a formal arrangement.
Chiang’s departure comes after 21 years at Microsoft, during which she held several positions within the company’s gaming business. She was particularly well known for leading the Minecraft franchise, one of Xbox’s most recognisable properties, before moving into the newly established COO role.
The position was introduced in July as part of a broader effort to reorganise Xbox’s operations. Sharma had described the need for stronger coordination across the business, explaining that the role would help teams work towards common objectives, make difficult decisions and improve execution.
However, Chiang’s exit after such a short period leaves questions about how Xbox will manage the responsibilities originally assigned to the position. Microsoft has not explained whether it intends to appoint a replacement or permanently distribute the role’s duties among existing leaders.
The leadership change comes against the backdrop of a major restructuring across Microsoft’s gaming division. The company has been reducing costs, revisiting development priorities and making organisational changes affecting studios and employees across its gaming portfolio.
Xbox’s restructuring has included thousands of job cuts and significant changes to its studio network. The wider Microsoft layoffs affected gaming operations, while several projects and development plans across the industry faced renewed scrutiny as the company reassessed its investments.
As part of the changes, Microsoft also announced that three studios would become independent following negotiations. These included Double Fine Productions, known for Psychonauts, Undead Labs, the developer behind State of Decay, and Compulsion Games, which created South of Midnight.
The future of other studios has also attracted attention. Ninja Theory, the team behind Hellblade, has faced uncertainty following unsuccessful acquisition discussions involving potential buyers, while Arkane Lyon, the studio responsible for Dishonored and Deathloop, has reportedly been seeking a buyer.
These developments illustrate the wider challenges facing Xbox as it attempts to balance its creative ambitions with financial and operational pressures. The gaming business has invested heavily in studios, intellectual property and subscription services in recent years, increasing the importance of delivering commercially successful releases while managing costs.
Chiang’s exit does not, by itself, establish a change in Xbox’s overall strategy, but it adds another layer of uncertainty during a period of considerable organisational transition. Her experience with Minecraft and Microsoft’s gaming operations had made her a significant figure within the business, and her departure raises questions about the leadership structure Sharma intends to establish.
For now, Microsoft has offered little information beyond confirming that Chiang has left the company. The reasons for her departure remain undisclosed, and the company has not provided a timeline for announcing its next steps regarding COO-level responsibilities.
As Xbox continues its restructuring, attention will turn to how Sharma distributes leadership duties and whether further organisational changes are planned. The coming months could offer a clearer picture of the company’s priorities as it works to streamline operations, support its development studios and determine the direction of its gaming business.
