Microsoft reorg confirmed: Xbox One OS now under Windows division

As rumored, Microsoft has confirmed that the company will be going through a reorg via a memo from Steve Ballmer. The memo details a massive restructuring of the company dividing everything into a number of divisions. As a result, it seems that the Xbox division will now be split across two departments.
In Ballmer’s memo [via All Things D], he outlines the new divisions: Business Development and Evangelism, Marketing, Engineering, Advanced Strategy and Research, HR, Legal, Finance, and Operations.
Under Engineering, the division will be segmented under four units: Operating Systems, Applications and Services, Cloud and Enterprise, and Devices and Studios.
As previously rumored, Windows Chief, Julie Larson-Green has been named as the person in charge of Devices and Studios, which includes the management of the Xbox One hardware. Its widely believed that Don Mattrick was pinned as the candidate to take on this role before he moved over to Zynga. Larson-Green will also be responsible for Studio management.
The Operating Systems unit will be headed by Terry Myerson, former head of Windows Phone. Myerson will oversee Windows and Xbox One’s software functions including OS and software Apps. This is a telling move, showing the direction Ballmer wants to take the Xbox in.
As a result of this reorg, financial reporting will no longer be broken out into distinct business units like Xbox/Entertainment. This may make it much more difficult for investors to determine the performance of specific products such as Windows Phone, Bing and Xbox One in the future.
Its alarming that the OS for the Xbox One will now be helmed by the Windows division. Its been rumored since back in 2001 that the ‘old school’ cronies in charge of the powerful OS division has objected to the money losing Xbox. Its not surprising as Microsoft is a software company and is used to enjoying profit margins higher than 60 percent.  
The original intent of the Xbox was to levy the game console as a Trojan horse by paving a road into the living room for Windows. With the Xbox’s OS software under Myerson, the direction of how the platform will operate will ultimately come from his area. Ballmer did emphasized collaboration between the various departments as the key to succeeding.
With Don Mattrick out, its concerning that there is no longer a ‘games guy’ in the leadership position at Microsoft.

View the original article here