Microsoft Xbox chief quits

Its not only in soccer and county clubs that people get transferred from one to another.In a surprise shift at the top of Microsoft Corp.'s video-game business, the company's XBox chief has quit his job to join EA.-- and he'll be replaced by a former EA executive!

The upcoming departure of Peter Moore, announced Tuesday, follows a recent period of turmoil for Microsoft's Xbox 360, including a costly charge for console malfunctions, and sales that fell short of projections. But Microsoft officials say Moore's decision isn't related.

The change comes at a critical moment in the video-game industry, as the newest consoles from Microsoft, Sony and Nintendo battle for market share.

Moore, 52, the corporate vice president in charge of Microsoft's Interactive Entertainment division, also is responsible for the Windows games business. He will be replaced by Don Mattrick, 43, a video-game industry veteran who himself left Electronic Arts last year.

Robbie Bach, president of Microsoft's Entertainment and Devices Division, said Moore's decision resulted from his desire to move his family back to the San Francisco Bay Area. Acknowledging that companies often cite family issues when there are other reasons for departures, Bach said that's not the case this time.

"It's straightforward as straightforward can be," he said. "Peter wanted to be in the Bay Area. We didn't have the right job for him down there in the gaming business. EA had a good job, and we were fortunate enough to have Don here, ready and able to take over the business."

Mattrick, who has been working as an external adviser to Microsoft since earlier this year, will become the senior vice president in charge of the Interactive Entertainment business beginning July 30. Moore will remain at Microsoft through August, during the transition.

Microsoft acknowledged two weeks ago that Xbox 360 flaws had reached "unacceptable" levels, requiring it to take a charge of more than $1 billion in the June 30 quarter for replacements and warranty extensions. At the same time, Microsoft said cumulative Xbox 360 sales had come in slightly below the 12 million-unit target that it had set for that point.

At Electronic Arts, Moore will oversee the EA Sports label, reporting to CEO John Riccitiello, the company said. Microsoft's Bach said Moore told him several weeks ago about his desire to move his family back to the San Francisco area.

"I'm really sorry to see Peter leave. I would like nothing better than for him to continue driving the business and continue building it," Bach said, adding that Mattrick gives the company a leader who can continue the work Moore started.

Mattrick made it clear that he's not planning big changes right away.

"There's a lot of great stuff going on here," he said in an interview. "When you think about the 360 business, in particular, there's a great plan in place, a great lineup of products." He noted that Microsoft is in "the leadership position," and said he expects that to continue.

Under Moore's leadership, the Xbox 360 jumped out to an early lead over Sony's PlayStation 3 and the Nintendo Wii in cumulative U.S. unit sales, thanks to a yearlong head start. But the lower-priced Nintendo console has been quickly closing that gap, leading the two competitors in recent monthly sales totals.

Microsoft isn't likely to change course in the Xbox business anytime soon, said Matt Rosoff, an industry analyst at independent research firm Directions on Microsoft. "I think that they have their business plan for fiscal year '08, and the holiday season, and they're going to go ahead and execute that plan," he said.

After spending billions on development of the two Xbox consoles, Microsoft has said it wants the Xbox business to reach operating profitability this fiscal year, which began July 1.

Any major strategy shifts, if they happen, would come after the holidays, and would take into account the Xbox 360's market position against the Wii and PlayStation 3, Rosoff said.

Moore wasn't available to comment. Before he joined Microsoft, he was president of Sega of America, where he oversaw projects including the since-discontinued Dreamcast console.

In recent years, Moore has been an outspoken promoter and the public face of the Xbox 360. Among other things, he became known for rolling up his sleeves at appearances to reveal large temporary tattoos promoting games such as "Halo 2."

The position at EA will require Moore to shift gears -- putting him in the unfamiliar position of partnering with the companies he has been competing against. EA publishes games for the Nintendo and Sony consoles, in addition to the Xbox 360.

Jack Tretton, president and chief executive of Sony Computer Entertainment America, said in a statement that the company is looking forward to working with Moore in his new role.

"We have an outstanding relationship with EA and their sports products have been incredibly successful on all our platforms," Tretton said. "I am sure this will continue with Peter now at the helm."