Major Xbox shake-up

Robbie Bach (pictured) and J Allard, two MS employees largely responsible for the launch of Xbox, are to leave Microsoft later this year.

This major shake-up at the top comes at a time when Microsoft faces massive competition from firms such as Apple and Google, Sony and Nintendo.

Bach leaves Microsoft after 22 years and J Allard, Senior VP of Design and Development for E-D, will be leaving after 19 years, though he'll be freelancing in an advisory capacity.

Senior Vice President Don Mattrick (and ex-EA man) will now head up the company's Interactive Entertainment Business. He will report to Microsoft CEO Steve Ballmer.

"If Ballmer is getting pressure that they have not really succeeded overall in the division, and it's time to fix it, the easiest thing to do is change the leadership," said Wedbush Securities analyst Michael Pachter.