Microsoft Corp. (MSFT) Chief Executive Officer Steve Ballmer is considering a reorganization that would put Skype president Tony Bates in charge of acquisitions and relationships with software developers, according to people familiar with the matter.

Ballmer may also give Windows chief Julie Larson-Green oversight of hardware engineering for the whole company, said one of the people, who asked not to be named because the plans are private. Ballmer is expected to reveal a reorganization as early as next week that aligns Microsoft’s business units around devices and services, the people said.

Microsoft, which is struggling to gain share in mobile phones and tablets, announced a shift in strategy last year for the world’s largest software maker to focus on computing devices and Internet-based services. Restructuring will concentrate units under these areas and also separate product engineering from business functions like marketing and finance, which will get their own groups.

The restructuring isn’t finalized and Ballmer may still shuffle roles around up until it’s officially announced, the people said. Xbox head Don Mattrick had been a contender for the hardware post before left the company to become CEO of Zynga Inc. (ZNGA), a move announced July 1.

Under this scenario, Larson-Green would oversee hardware engineering for all devices, including Xbox gaming consoles and Surface tablets, one person said. Windows Phone software chief Terry Myerson would be given added responsibility for Windows operating system engineering under a group combining both businesses, the person said.
Yikes. What is her credential when it comes to gaming?