Update #2: It looks like no one will replace Mattrick, according to a memo obtained by Kotaku attributed to Microsoft CEO Steve Ballmer. Instead of replacing Mattrick, all of Mattrick's subordinates in the division will now report directly to Ballmer.
Update: It is official – Don Mattrick has joined Zynga as the new CEO and a member of the Board of Directors, effective July 8. Mark Pincus, Zynga's founding chief executive officer, remains Chairman of the Board of Directors and Chief Product Officer of the company. No word on who will replace Mattrick at Microsoft.
Original Story: According to an AllThingsD report, Microsoft's head of the Interactive Entertainment Business Don Mattrick (who is in charge of the Xbox division) is leaving the company to join social gaming company Zynga. The report further speculates – based on sources familiar with the situation – that Mattrick may be being groomed to become Zynga's next CEO, taking over the job from Mark Pincus. Mark Pincus would no doubt take on another executive role within the company.
The report does not indicate if this departure is an amicable one or not given Mattrick's (and other Microsoft executives) inability to deliver a message from the company that didn't upset consumers. Much of the messaging about used games, indie games support, and being forced to connect to the internet once a day with the new Xbox One console can be laid at the feet of Mattrick.
Does this mean that Microsoft is going to try and reset its messaging on Xbox One? Maybe, but it would have to let a few more people go in order to do that given just how much bad messaging came out after the company's initial press conference in May and its Xbox One press conference prior to E3…
We will continue to follow this story as it develops. Microsoft has not confirmed the validity of the report.