Sources have confirmed to Kotaku that both Robbie Bach, the current head of all things entertainment for Microsoft, and J. Allard, one of the top men behind the Xbox and Xbox 360, are leaving Microsoft.


In a memo this morning to Microsoft employees obtained by Kotaku, Microsoft CEO Steve Ballmer announced that the two were "retiring" from the company.


Ballmer says that after 22 years with Microsoft, Bach, the president, of Microsoft's entertainment and devices division, is leaving Microsoft on a high note. "This has been a phenomenal year for E&D overall, and with the coming launches of both Windows Phone 7 and "Project Natal," the rest of the year looks stupendous as well." He will remain with Microsoft until the fall.

"At Microsoft, I've been so fortunate to spend more than two decades of my life working with incredible people and doing amazing things like launching Office, Xbox and Xbox Live, the ‘Halo' franchise, Windows Phones, Zune and more," Bach said in a prepared statement. "I'm at the time in my life where I want to dedicate more time to my family and my nonprofit work, including my work with the Boys & Girls Clubs of America. I have the utmost confidence in Steve, Don and Andy and their ability to see through our mission of bringing extraordinary entertainment and mobility experiences to life for people around the world."

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Ballmer also confirmed rumors that J. Allard, the company's chief experience officer and chief technology officer of the entertainment and devices division, is leaving the company after 15 years. Allard will continue to work as an advisor to Ballmer, "helping incubation efforts, looking at design and UI, and providing a cross-company perspective on these and similar topics."


Allard was spotted over the weekend at a New York restaurant, but at the time we were told he was on sabbatical.

The loss of two key personnel from Microsoft's entertainment and devices division, the unit responsible for things like the mobile phones, the Xbox 360 and Zune, comes at a time when the company is facing daunting competition from the likes of Apple, Google, Nintendo and Sony. The shakeup could be a sign that the company recognizes the need for a shake up in a division that brought in $1.67 billion in sales in the first quarter of the year.


According to the memo obtained by Kotaku, Don Mattrick, who leads Microsoft's interactive entertainment business, and Andy Lees, who leads Microsoft's mobile communications business, will report directly to Ballmer starting in July. Meanwhile corporate vice president David Treadwell will now report to Mattrick.

The rest of the reorg chart won't be ready for printing until later in the year, after Bach and Ballmer have a chance to figure out who should be doing what.


In his morning bombshell, Ballmer praises both Bach and Allard for helping push Microsoft into the entertainment industry and changing the company's culture.

"I want to close by thanking Robbie for the incalculable contributions he has made to Microsoft over the years. He will be greatly missed when he retires this fall, and I am glad that I'll have the opportunity to continue working closely with him between now and then," Ballmer writes. "And as J makes a similar transition, I look forward to working with him in a new way."


Update: Microsoft has confirmed the departure of Bach. Canned quotes from the departing exec added up in the story.

Make sure to check out our memory-filled retrospective on Allard and his time at Microsoft.