Robbie Bach, the new head of Microsoft's digital media and entertainment businesses, has reshuffled the senior management of the division, putting control of the 'digital home' strategy into the hands of a group of executives who masterminded the creation of the Xbox video games business.
According to the Financial Times the appointments mark the first fall-out from a reorganisation in September that gave three executives, including Bach, broader responsibilities to run all of Microsoft's operations.
The latest changes see Peter Moore, former head of games and publishing for the Xbox, given overall responsibility for the Xbox business, a position previously held by Bach.
Another senior Xbox executive, J Allard, has been handed responsibility for the platform technology across the digital entertainment group.
Allard famously wrote a memo to Bill Gates a decade ago warning of the threat to the software company posed by the rise of the internet. It proved the catalyst to a far more internet-focused strategy.
Bryan Lee, the former chief financial officer for the company's home and entertainment division, which largely comprised the Xbox, has been put in charge of digital music, video and other entertainment operations.
Students of corporate climbing will be amused to note that the Xbox execs have presided over losses totalling more than $4bn.
Such huge red marks on the balance sheet are sweetened by the fact that the Xbox is now the closest challenger to Sony's PlayStation in the US and Europe.
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