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Microsoft Shakes Up Entertainment Division with Departure of Top Executives

Strategic Insights

— 1 min read

Microsoft's Entertainment and Devices division is experiencing a significant shake-up with the departure of two top executives: Robbie Bach, president, and J Allard, chief technology officer and chief experience officer. This move comes at a critical time for the company, which is struggling to compete with competitors in the mobile phone and media player markets. Bach, a 22-year Microsoft veteran, will retire this fall, citing a desire to dedicate more time to his family and nonprofit work.

Key Takeaways:

  • Robbie Bach, president of Microsoft's Entertainment and Devices division, is retiring this fall after 22 years with the company.
  • J Allard, chief technology officer and chief experience officer, is leaving the company and will continue to advise CEO Steve Ballmer.
  • The shake-up comes at a critical time for Microsoft, which is struggling to compete with competitors in the mobile phone and media player markets.
  • The company's phone software and Zune lag behind those of competitors, such as Apple Inc.
  • Microsoft has just overhauled its mobile phone system and introduced a new brand of phones, called Kin, for younger users.
  • The company is hoping to improve Xbox sales with an upcoming video game system that understands body movements.
  • Microsoft's entertainment division accounted for 11 percent of the company's revenue and 3 percent of its income in the most recent quarter.
  • Don Mattrick and Andy Lees, the current leaders of the video game business and the mobile phone business, respectively, will report directly to CEO Steve Ballmer.

Statistics:

  • 22 years: Robbie Bach's tenure at Microsoft.
  • 18 years: J Allard's tenure at Microsoft.
  • 11 percent: Microsoft's entertainment division accounted for of the company's revenue in the most recent quarter.
  • 3 percent: Microsoft's entertainment division accounted for of the company's income in the most recent quarter.
  • 2005: The year Robbie Bach led the division as president since it was formed.
  • 3 quarters: The company's phone software and Zune both lag behind competitors, notably Apple Inc.

Sources:

  • [Associated Press]
  • [No specific date]

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