Bach, Allard Out In Microsoft E&D Shakeup

Robbie Bach, president of the Entertainment and Devices division and a 22-year Microsoft veteran, will retire in the fall and will stay on until then "to ensure a smooth transition," Microsoft said in a statement.

J Allard, a 19-year Microsoft veteran and senior vice president of Design and Development for E&D, is leaving the company but will stay on in an "official role" as a strategic advisor for CEO Steve Ballmer.

Allard, who is credited with driving the creative vision behind the Xbox, Zune and Kin, was also involved in Microsoft's dual screen Courier tablet and was reportedly frustrated with Microsoft's decision to scrap the project.

Microsoft Senior Vice President Don Mattrick will remain in his role as head of the Interactive Entertainment Business and Senior Vice President Andy Lees will do the same in the Mobile Communications Business. Both will report directly to Ballmer starting July 1, the first day of Microsoft's fiscal 2011 year.

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The re-org isn't surprising given that Windows Mobile's struggles happened under Bach's watch. Although Microsoft plans to launched Windows Phone 7 later this year, the company's mobile fortunes continue to fade as hard charging competitors like Apple and Google ramp up their mobile efforts.

Windows Mobile devices accounted for 6.8 percent of worldwide smartphone sales in the first quarter, down from 10.2 percent during last year's Q1, according to the latest Gartner figures.