USA Today
SEATTLE — The sudden departure on Tuesday of two top Microsoft executives, once considered rising stars, highlights the company's growing frustrations trying to keep pace with Apple and Google in introducing hot consumer products.
Leaving are Robbie Bach, 48, president of Microsoft's entertainment and devices division, and J Allard, 41, Bach's senior vice president for design and development.
"It's a pretty big shake-up, mostly related to their mobile (devices) business not performing where it needs to be," says Matt Rosoff, analyst at research firm Directions on Microsoft.
With Apple's iPhone and Google's Android phones capturing buyers' fancy, Microsoft shipped 15 million Windows smartphones in 2009, down from 16.5 million in 2008, according to market researcher Gartner. The Kin, a new youth-oriented cellphone, has gotten lukewarm reviews. And development of the Courier, a dual-screen tablet PC that was to take on Apple's iPad, has been suspended.
Bach's biggest sin may have been his failure to keep Hewlett-Packard as a major supplier of Windows smartphones, says Charles King, principal analyst at Pund-IT consultancy. HP is acquiring device maker Palm for $1.2 billion and launching its own proprietary line of smartphones. "It's one thing to get dumped on by your competitors, quite another to suffer a slight from a friend," King says.
Microsoft CEO Steve Ballmer praised Bach, who was elevated to overseeing all Microsoft consumer and portable products after successfully launching the Xbox gaming system. Bach "has personified creativity, innovation and drive," Ballmer said.
Bach said he was retiring to spend more time with his family and do non-profit work.
No replacement will be named. The executives heading up two crucial initiatives — the introduction later this year of Xbox "Natal" 3D games and Windows Phone 7, an upgrade to the software used in Windows smartphones — will report directly to Ballmer.
Xbox is a pop culture hit — but not yet a profit center for the company. And Microsoft remains under pressure on other fronts. Office 2010, the latest version of its top-selling clerical suite, is expected next month. Office is being challenged by Google Apps and other Web-based business tools.
Microsoft marketing executives recently made a major gaffe by naming the newest version of its database server software SQL 2008 Revision 2, instead of SQL 2010, says Trip Chowdhry, analyst at Global Equities Research. Sales staff are "having a tough time persuading customers that the new version includes revolutionary technologies, not just bug fixes," Chowdhry says.
Bach's exit could be a wake-up call. "If Robbie Bach can be shown the door, certainly no one at the company is sacrosanct," King says.
Leaving are Robbie Bach, 48, president of Microsoft's entertainment and devices division, and J Allard, 41, Bach's senior vice president for design and development.
"It's a pretty big shake-up, mostly related to their mobile (devices) business not performing where it needs to be," says Matt Rosoff, analyst at research firm Directions on Microsoft.
With Apple's iPhone and Google's Android phones capturing buyers' fancy, Microsoft shipped 15 million Windows smartphones in 2009, down from 16.5 million in 2008, according to market researcher Gartner. The Kin, a new youth-oriented cellphone, has gotten lukewarm reviews. And development of the Courier, a dual-screen tablet PC that was to take on Apple's iPad, has been suspended.
Bach's biggest sin may have been his failure to keep Hewlett-Packard as a major supplier of Windows smartphones, says Charles King, principal analyst at Pund-IT consultancy. HP is acquiring device maker Palm for $1.2 billion and launching its own proprietary line of smartphones. "It's one thing to get dumped on by your competitors, quite another to suffer a slight from a friend," King says.
Microsoft CEO Steve Ballmer praised Bach, who was elevated to overseeing all Microsoft consumer and portable products after successfully launching the Xbox gaming system. Bach "has personified creativity, innovation and drive," Ballmer said.
Bach said he was retiring to spend more time with his family and do non-profit work.
No replacement will be named. The executives heading up two crucial initiatives — the introduction later this year of Xbox "Natal" 3D games and Windows Phone 7, an upgrade to the software used in Windows smartphones — will report directly to Ballmer.
Xbox is a pop culture hit — but not yet a profit center for the company. And Microsoft remains under pressure on other fronts. Office 2010, the latest version of its top-selling clerical suite, is expected next month. Office is being challenged by Google Apps and other Web-based business tools.
Microsoft marketing executives recently made a major gaffe by naming the newest version of its database server software SQL 2008 Revision 2, instead of SQL 2010, says Trip Chowdhry, analyst at Global Equities Research. Sales staff are "having a tough time persuading customers that the new version includes revolutionary technologies, not just bug fixes," Chowdhry says.
Bach's exit could be a wake-up call. "If Robbie Bach can be shown the door, certainly no one at the company is sacrosanct," King says.
