Microsoft CEO Steve Ballmer detailed a sweeping restructuring plan in an internal email to employees. In the memo Ballmer said that Microsoft will be organized by function within four groups: OS, Apps, Cloud and Devices. The Xbox part of the business will now be under the auspices of a division called "Devices and Studios Engineering Group." Former Windows chief Julie Larson-Green has been named the leader of the Devices and Studios Engineering Group, which has authority over all hardware development, including Xbox.
She will also be responsible for "experiences including all games, music, video and other entertainment." She replaces Don Mattrick, who recently announced his departure from Microsoft's Entertainment and Devices division to become the CEO of Zynga.
"We are rallying behind a single strategy as one company – not a collection of divisional strategies," CEO Steve Ballmer wrote in a company memo this morning. "Although we will deliver multiple devices and services to execute and monetize the strategy, the single core strategy will drive us to set shared goals for everything we do."