Helen Chiang, Xbox's first-ever chief operating officer, has left Microsoft just three months after taking on the role. The news comes from a short internal memo by Microsoft Gaming CEO Asha Sharma, obtained by The Verge, which simply states that Chiang is leaving the company and thanks her for her years of service. No reason was given, and Xbox's VP of communications, Kari Perez, said the company doesn't discuss individual personnel matters. There's no successor yet either, so Chiang's duties will be split among other Xbox leaders for now, with Sharma promising more details on COO leadership once plans are finalized.

Chiang had been at Microsoft for around 21 years, starting in 2005 and moving to Xbox in 2007, where Sharma credits her with helping build Xbox Live. She later led Mojang and became corporate vice president of the Minecraft franchise in 2020. Sharma created the COO position in July as part of her reset of Xbox, and it came with end-to-end profit and loss responsibility across content, hardware, platform, and services. That same reset includes around 3,200 job cuts by the end of fiscal year 2027, with hundreds of jobs already gone. Losing the executive meant to hold the whole business together this early into the reset probably isn't the kind of stability Xbox was hoping for.

Update Oct 25th: A verified source familiar with the situation has told Eurogamer that Helen Chiang was "terminated for policy violations." This claim has not been independently verified.

Update Nov 3rd: Helen Chiang has since denied being "fired for a policy violation" in a recent LinkedIn post. She goes on to clarify more points about her departure. You can read her full post below.

There has been a lot of talk about the new Xbox CEO, Asha Sharma, since it was announced that she would be taking over from Phil Spencer, and she has even made a handful of statements about her intent for the future of the Xbox platform—even if some of those have simply led gamers and commentators to the conclusion that she is there to usher Xbox into the night. However, in a recent interview with Windows Central, Sharma and the new Xbox CCO (Chief Content Officer), Matt Booty, have commented on the immediate future of Xbox and what Sharma previously referred to as the "return to Xbox."

According to the two executives, the next steps revolve around the next-gen Xbox hardware platform, which is rumored to launch around 2028 as a PC-console hybrid, and Microsoft's first-party development efforts. Sharma said "For me, the spirit of 'Return to Xbox' is about returning to the spirit that the team was founded on... It's that spirit of surprise, it's the spirit of building something nobody else is willing to try," going on to explain that "I think that our core Xbox fans and players have invested up to 25 years of themselves in these universes and our console. I want to make sure everybody knows I'm committed to Xbox, starting with the console. We're going to keep meeting players where they are—the world continues to evolve and change. We're going to make sure Xbox is a great place for developers and players. We want to invest in reducing the artificial divide between different types of devices that they want to use with us. I think that's going to mean a lot more investment in breaking down the barriers, in helping developers build once and show up across different hardware experience."

Shortly following the recent announcement that Phil Spencer would be leaving as the head of Xbox Gaming, the division's new CEO, Asha Sharma, released a long statement expressing her distaste for AI slop and her belief that, although "AI has long been part of gaming and will continue to be," games "are and always will be art, crafted by humans and created with the most innovative technology provided by us." Many gamers have been skeptical of these and similar statements now and in the past, but it seems as though industry veteran and founder of Xbox, Seamus Blackley, seems to be convinced that those are empty words, whether Sharma believes it or not. In a recent interview with GamesBeat, Blackley said about Sharma that he believes "her job is going to be as a palliative care doctor who slides Xbox gently into the night," going on to say that assurances like the aforementioned one by Sharma are "just what occurs to people to say when they bring in someone from an outside business into games."

In Blackley's view, Microsoft's bet on AI will result in a lot of the non-AI businesses being sunsetted, and that is what is happening to Xbox under the new CEO. He says that, just like AI has taken over "everything else," it will take over gaming as well, at least at Microsoft, going on to say that "Asha's background is entirely in software as a service and AI. The implicit thing here is that games is going to be AI-driven software as a service." Part of his justification for this belief is that, despite gaming industry veteran, Matt Booty, acting as Executive Vice President and Chief Content Officer, Sharma is an outsider to the gaming industry and doesn't necessarily understand the industry. His concern is that such an outsider, especially one coming from an AI background, can only see gaming in an abstract way. That said, he does admit that there have been outsiders that have succeeded in gaming, but those that have understood that gaming is a content business. He also jokingly says that her statement about the future of Xbox "reminded me of that meme 'Hello, fellow kids!'" and that she would have to figure out what's interesting about gaming.

It was recently revealed that Xbox Gaming's long-time CEO, Phil Spencer, would be leaving Microsoft after nearly 40 years at the company, with Asha Sharma taking over as CEO of Microsoft Gaming after her role as chief of the company's CoreAI platform. Shortly after the announcement of his departure, Sharma released an internal statement with comments about the future of Xbox Gaming and her views on topics like AI, monetization, and art. In short, Sharma says she wants to prioritize creating "great games" with unforgettable characters, stories that resonate, and creative, innovative gameplay. In the latter part of the statement, she addresses the inevitable questions and concerns about a former AI leader taking over the gaming division. She makes a number of comments about AI and the future of gaming, stating that "As monetization and AI evolve and influence this future, we will not chase short-term efficiency or floor our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us."

Later, in a statement to Variety, Sharma reinforced these statements, stating that she wants to "earn the right to be trusted by players and developers," and noting that "AI has long been part of gaming and will continue to be." She again emphasized the importance of "deep emotional resonance" in games, and reiterated her stance that she has "no tolerance for bad AI." It's worth noting that CoreAI, the platform Sharma was previously in charge of at Microsoft, is a suite of AI-powered developer tools designed for "the AI era," with a significant focus on agentic AI. If Sharma's statements are to be believed, it seems reasonable to assume we will be seeing more AI trickle into first-party Xbox games, but it may not be the AI-first approach that companies like EA have recently adopted in the name of efficiency.

The name synonymous with Xbox—Phil Spencer—is leaving Microsoft after nearly 40 years at the company. He started as an intern back in 1988 and has been with the Xbox team since 2001, helping the project thrive in the following decades. According to the announcement, Microsoft is overhauling its Gaming division with some new names, while the old executive team has left the company. In addition to Phil Spencer, Xbox president Sarah Bond has also left the company. From now on, Asha Sharma, who currently serves as the company chief for the CoreAI product, will be taking on the new role as the CEO of Microsoft Gaming. Microsoft's CEO Satya Nadella shared a memo with all Microsoft employees about the status of this update.

Satya NadellaLast year, Phil Spencer made the decision to retire from the company, and since then we've been talking about succession planning. I want to thank Phil for his extraordinary leadership and partnership. Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it.