In a memo sent to employees, Microsoft CEO Steve Ballmer detailed to employees the rationale behind the company's sweeping reorganization. Under the mantra of "One Microsoft", he intends to unite efforts of the company's divided segments across OS, apps, devices and the cloud. As we've covered before, this has also led to promotions within the company, notably Julie Larson-Green becoming new head of hardware. This places her squarely in charge of the Xbox, as well as Microsoft Studios.
However, this turns out to only be half of the equation for Team Xbox, as the Xbox One's three operating systems will now be handled by a separate division, to be handled by former Windows Phone head Terry Myerson.
Terry Myerson was head of Windows Mobile's engineering in 2008, and in 2011 was tasked with relaunching the company's mobile efforts with Windows Phone. Although Windows Phone struggles to gain a foothold in the smartphone market, it was a major step forward for the company, succesfully executed under Myerson.
Ironically, it's Larson-Green who has a background in software and Myerson who has worked with hardware. In a investor's conference call following the announcement, Ballmer touted the two to be in charge of releasing future devices to market, hopefully to execute as well as Apple.
On the side, Microsoft's new head for the Cloud division is interim Cloud and Enterprise manager Satya Nadella. Whereas Microsoft's other businesses have suffered in the market through the years, it's their Azure services that have kept the company indomitably profitable. Cloud computing for games is being touted as a selling point for the Xbox One.
The reorganization is still good news for Xbox fans, but to paint a more accurate picture, Larson-Green isn't 100 % in charge of Xbox. Microsoft is betting large that unified management across their core divisions will help bring Xbox One, and also Windows 8, possibly even the Surface and Windows Phones, into the forefront of gaming's next generation.