Industry Moves: Microsoft Reorganizes Into Three Divisions: Xbox Guru Robbie Bach Gets Leading Role

Seeking to send the message “Microsoft Realigns for Next Wave of Innovation and Growth” instead of “Microsoft Needs a Shake Up”, Microsoft CEO Steve Ballmer announced today a corporate reorg with far-reaching implications.
The three divisions and their new presidents are:

– Microsoft Platform Products & Services; includes Windows Client, Server and Tools, and MSN; Kevin Johnson and Jim Allchin will be co-presidents until Allchin retires after Vista’s launch in 2006. The goal: “to enable exciting user experiences and drive customer value through continued innovation in the software platform and software services delivered over the Internet.”

— Microsoft Business, includes Information Worker business and Microsoft Business Solutions; Jeff Raikes. The goal: (the first goal should be to rewrite this in English) “deliver software and software-based services that enable organizations to succeed in today’s constantly evolving workplace by amplifying the impact of their people.”

– Microsoft Entertainment & Devices, combines Home and Entertainment with Mobile and Embedded Devices; Robbie Bach. The goal: “to consolidate Microsoft’s industry engagement around devices to deliver even richer and more relevant scenarios for individuals at work, at home and when they’re mobile.”

Each president will report directly to Ballmer. CTO Ray Ozzie will take responsibility for the shift to to “software-based services strategy and execution” across all three divisions; he will report directly to Chairman Bill Gates.

First thoughts: The move underscores MSN’s status as a distribution platform and online innovation hub for the company instead of a portal. Also, the combination of entertainment with all devices makes sense as does the appointment of Robbie Bach, whose role bridging the various efforts has become increasingly visible and important.

Press release. More to come.

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