UPDATE: Xbox responds, and source familiar with the situation alleges Chiang was terminated for "policy violations".

UPDATE 6.00pm (UK): In a formal statement, Xbox told Eurogamer: "We don't discuss individual personnel matters. We're grateful for Helen's years of service and wish her well".

A verified source familiar with the situation separately told Eurogamer that Helen Chiang had allegedly been "terminated for policy violations". Eurogamer has not been able to independently verify this claim.

Original story follows.

ORIGINAL STORY 2.00pm BST: Helen Chiang, Xbox's first-ever chief operating officer (COO), is leaving Microsoft just three months after taking the job.

According to The Verge, Xbox CEO Asha Sharma confirmed Chiang's departure in an internal memo circulated on 23rd October.

"Helen Chiang is leaving Microsoft today. I'm grateful for her years of service and wish her well," Sharma wrote.

Sharma provided no details on why Chiang - who'd been at Microsoft for 21 years and had previously served as head of Minecraft - was leaving the company, only adding, "we'll share more on COO leadership as plans are finalised". It's thought her duties will be shared between other Xbox execs.

Sharma created the role in July as part of Xbox's massive "reset", saying it was needed to "work toward a shared goal, make the right tradeoffs, and get things done". It also came with 3200 layoffs and four studio departures in "most significant" Xbox restructuring in history.

Microsoft revealed that Psychonauts developer Double Fine, State of Decay studio Undead Labs, and South of Midnight developer Compulsion Games would go independent following negotiations, while Hellblade developer Ninja Theory is now likely to close after two acquisition deals fell through.

Arkane Lyon - the beloved immersive sim studio behind the likes of Dishonored and Deathloop - is the one still in limbo, and yesterday we learned it reportedly only has until November to find a buyer.

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