The eminent Wall Street Journal is reporting late last night that Microsoft may be significantly altering its corporate structure around the division focused on videogames, mobile phones and other consumer devices (e.g. Zune, Ford Sync).
As we reported earlier, J Allard is sadly still expected to be leaving Microsoft. The WSJ is also backing up the story that his departure is a result of the Courier cancellation.
Likewise, Robbie Back, who oversees the Xbox Live and Mobile division, may also be part of the re-organization process, reportedly as a result of Microsoft's continued poor performance against Google and Apple. This is especially evident as we are on the eve of Apple surpassing Microsoft for the #2 spot on the S&P 500, which though not ultimately important, is certainly symbolic and revealing.
This may also just be routine with Microsoft preparing for the emergence of Windows Phone 7 and Project Natal in the fall. Either way, we hope it works out.
Update: Robbie Bach is retiring in the fall; J Allard is leaving; transition plan detailed
Update 2: Leadership Profiles: Andy Lees & Don Mattrick. Andy Lees, who will lead the Windows Phone 7/KIN teams, will report directly to Ballmer starting July 1st
Update 3: Ballmer's letter to the employees about the changes (via ZDNet)