Microsoft EDD re-org – A new dawn for Microsoft?

May 25, 2010 | By Surur

Entertainment and Devices Re-org It is fair to say, as Apple’s market cap is set to exceed Microsoft’s, that consumer computing devices have become an increasingly important measure of the success or failure of a company. By that measure Microsoft’s Entertainment and Devices division have at best a passing grade, with Xbox success, but Zune and Windows Mobile failures.

Whether the current re-org was spurred by this report card will not be known (Robbie Bach’s “retirement” at 48 is certainly suspicious) but the effect has ultimately been to bring the division front and centre in Microsoft, with its two VP’s Don Mattrick from the Interactive Entertainment business (Xbox), and Andy Lees, from the Mobile Communications business (obviously Windows Phone) now reporting directly to Steve Ballmer, and presumable being closely performance managed. Given what we have heard about Steve Ballmer, he is likely not a person one would want to disappoint too many times either.

J Allard has left the company, but will in fact it appears be elevated in many ways to a Svengali-like figure, now with direct access to Ballmer, advising on UI and Design, an area which has never been known as Microsoft’s strength.

With rumours that Courier-type interfaces may still make an appearance after all, it is likely Microsoft will be moving aggressively into the post-Windows consumer computing market.

What do our readers think? Let us know below.

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About Surur

Site Admin and Windows Phone enthusiast, he has been using Windows Mobile devices since before they were called PocketPC’s. He is currently sporting a HTC 7 Trophy.

Tagged microsoft

adam

i'm creating a portable xbox kinda like the ipad its something im working on right now its going to do everything!!! games, tv, movies, books u name it everything will be available for a flat monthly fee or 6 month one year subscribtion!
Chris

Sounds great except I distinctly remember Balmer himself as the idiot that couldn't understand the significance of the iPhone when it first came out. Clear as day, he chuckled when questioned about it and dismissed it saying people would never pay that much for a mobile device. All I could think was, does this man not know that unlocked Windows Mobile Pro phones sell for twice the price of an iPhone and carrier phones WM Pro phones sell for the same to a hundred more? The man seems so clueless, and thus far under his supervision all I see is MS following in the footsteps of others.
Kalif

Everything's going wrong for Microsoft.

Apple about to beat its market cap. Google getting traction with TV. Android crushing Windows Phone. The list goes on and on.

When the executive management is given the flick, especially at this critical time, you can assume something is very wrong in the mobile devices & entertainment division. Prepare for bad announcements to come.

NuShrike

So the last management shuffle to move Windows Phone under the entertainment division now show doubt and cracks, as it was called out last time.

GP007

Windows mobile was always under the E&D devision as far as I know. That said, "doubt and cracks"? Not really. Bach was just top managment and not directly tied to any specific project or anything. He's not even a coder or techie, he's another "marketing" person. Him leaving now has little effect on the work still going on with WP7 or XBox and so on.

G998

Market cap is irrelevant on the long run, and Apple's share price is overhyped. It will be difficult for Apple to raise it's market share without price cuts and lower margin will result in lower share price. I don't think Apple will be able to maintain it's profitability unless it restricts itself to the market niche it currently occupies. Most people cannot afford buying overpriced Apple ware.

Google TV is a me-too product that will most likely flop the same way as most other Google products.

And Android looks like it is copying Windows Mobile which means failure on the long run.

Outside the US Google is not cool anymore.

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