Microsoft Entertainment division shake up: Mobile future uncertain
Microsoft’s Entertainment and Devices division experienced a massive shakeup recently. This comes only a year after E&D was restructured to optimize the ailing division. However, it seems like the future of Windows Mobile maybe uncertain at this time with rumors of another massive change.
The E&D division at Microsoft houses all of the peripheral business units besides its core products. This division houses Windows Mobile, Zune, Media Center, IPTV products and Xbox. For the most part E&D has been spiraling downwards for the past several years with Zune suffering heavily this past year with a sharp drop in revenue. Windows Mobile also suffers significantly as the popularity of the platform waned considerably.
Microsoft attempted to rectify these concerns last year by reorganizing the E&D division to improve the sales of these products. According to ZDNet E&D has gone through another round of reorg recently. Apparently, earlier this week Microsoft moved the TV, Video and Media group which was previously handled by Corporate VP Enrique Rodriguez. His major responsibilities were with Zune, Mediaroom IPTV, and Media Center. All of these areas have been moved under Microsoft’s Interactive Entertainment Business (IEB), which is handled by Senior VP, Don Mattrick.
Mattrick handles the Xbox, Games for Windows and Microsoft Game Studios. It seems like an odd pairing to move everything under a division that handles video games mostly. However, this decision was made due to Rodriguez leaving the company to pursue other career opportunities.
Windows Mobile’s future seems unclear with rumors circulating around the Web that this unit may move under President Steven Sinofsky, who currently runs the development and business strategy for Windows, Internet Explorer and Windows Live. Windows Mobile is another problem area where the platform has been facing gradual decline for quite some time now. It will be interesting to see how this new reorg impacts all of these divisions. Hopefully its not just a knee jerk reaction where everyone is scrambling around to deal with Rodriguez’s departure.
Related Posts:
January 24th, 2010
Rather than getting rid of middle management and division heads, the person who must take responsibility for the Windows Mobile train wreck is the guy at the top: CEO Steve Ballmer.
Look at the Windows Mobile plummeting market share. There’s a massive momentum here, but it is moving away from Windows Mobile, and everyone’s going to Android and iPhone instead.
To reverse massive momentum is near impossible. Microsoft will release its new phone OS at the MWC conference in February, but this would have to be jaw-dropping and revolutionary to have any chance at reversing the torrent away from Windows Mobile.