While at Microsoft, Schappert served as a corporate vice president and oversaw various elements of Xbox 360 operations, including Xbox Live and Microsoft Game Studios.
Schappert will replace current EA COO John Pleasants, who is now leaving the company, and marks the latest former EA executive to return to the company. John Ricitiello, who left his position as EA COO and president in 2004, returned as CEO back in 2007.
No word yet as to who will replace Schappert at Microsoft, though with Pleasants now out of EA, there's always the chance that Schappert and Pleasants have merely swapped companies--as Microsoft's Peter Moore and EA's Don Mattrick did a few years back.
Update: Microsoft tells Kotaku that Schappert will not be replaced, as "Marc Whitten and Phil Spencer will lead their respective businesses, Live Services and Microsoft Game Studios, reporting directly to [senior VP] Don Mattrick."
Meanwhile, IndustryGamers reports that Pleasants will become CEO of Playdom, said to be "the largest game developer on MySpace."