Microsoft Looks To Jolt Mobile, Other Divisions, With Reorg

In an effort to invigorate some core divisions, Microsoft on Friday announced three executive promotions in mobile, interactive entertainment, and Office. Andy Lees has been named president of the Mobile Communications Business; Don Mattrick president of the Interactive Entertainment Business; and Kurt DelBene president of the Microsoft Office Division.

Mobile remains a drag on Microsoft's overall performance -- so much so that CEO Steve Ballmer received just half of the maximum bonus available for fiscal year 2010, according to documents just filed with the SEC.

Specifically, Ballmer was faulted for "the unsuccessful launch of the Kin phone; loss of market share in the company's mobile phone business; and the need for the company to pursue innovations to take advantage of new form factors," according to documents filed with the SEC.

As president of the Mobile Communications Business, Lees will continue to oversee the overall marketing and product development for Microsoft's mobility efforts. Lees, a 20-year Microsoft veteran, has led the Mobile Communications Business since February 2008 and was at the center of the company's efforts to rebuild the mobile business, including the development of the upcoming Windows Phone 7 to be released this holiday season.

As president of the Interactive Entertainment Business, Mattrick will continue to oversee an array of businesses and services focused on consumer entertainment, including Xbox 360, Xbox LIVE, Kinect, Zune Music and Video, and Mediaroom, as well as PC and mobile interactive entertainment, which were added to his portfolio in May when Robbie Bach, long-time president of Microsoft's Entertainment and Devices Division, announced his intention to retire later this year.

Mattrick joined Microsoft in 2007 to lead the Interactive Entertainment Business, and is credited with driving growth in the company's global Xbox 360 business, increasing the Xbox 360 install base to 42 million owners worldwide and more than 25 million Xbox Live users.

DelBene has been with the software giant for 18 years, and most recently led the engineering and development teams for the Microsoft Business Division, including the development of the recently launched Office 2010 products and services.

As president, DelBene assumes responsibility for the Microsoft Office Division, including both the engineering and marketing functions for clients, servers and services for information workers, including Office, Exchange, SharePoint, Lync, Project, Visio and Microsoft's speech technology investment.

In related organizational moves, Kirill Tatarinov will continue to oversee Microsoft Business Solutions and will report to CEO Steve Ballmer.

Despite its mobile woes, Microsoft posted a record $62.5 billion in revenue for fiscal year 2010, which ended on June 30.

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