Don Mattrick, the head of Microsoft's Interactive Entertainment Business that oversees the company's Xbox division, is reportedly stepping down to take a high-level position at Zynga. According to All Things D, multiple sources have said that Mattrick could be in line for the position of CEO, a move that would mark a major shake-up for both companies involved. While Microsoft is rumored to be in the middle of a major reorganization set to be unveiled today, the timing behind this move is still rather surprising. Microsoft is ramping up for its fall launch of the Xbox One console, something that Mattrick undoubtedly was closely involved in — but it's possible that Mattrick is leaving because of the large amount of PR difficulties that have followed the Xbox One. Microsoft recently had to do an about-face due to a growing chorus of complaints regarding a number of controversial policies for the forthcoming console, including a required online check-in every 24 hours.

The destination is equally curious — Zynga has been dealing with some major challenges, recently closing offices and laying off more than 500 employees. Things are tough from a financial perspective, as well; the company's revenue dropped 18 percent last quarter and audience engagement metrics are down as well. All Things D says that Mattrick will be working closely with current CEO and founder Mark Pincus to revive the struggling company, and a formal announcement could come as soon as today after the markets close. In the meantime, we've reached out to Microsoft for a comment and will update with any news we hear.

Update: Zynga has confirmed that Don Mattrick is taking over as CEO and joining the company's board. Former CEO and founder Mark Pincus will stay on as chairman and chief product officer. Mattrick will start next week, but will be stopping by Zynga tomorrow to do a Q&A with the company's employees.

Update 2: Microsoft CEO Steve Ballmer has sent an email to the company's employees informing them of the transition. Ballmer wishes Mattrick good luck at Zynga, highlights his accomplishments, and touts the company's upcoming Xbox One launch. His full message is below: