19-year Microsoft veteran Julie Larson-Green the new head of Microsoft's Devices and Studios Engineering Group, overseeing all Xbox development.

Microsoft CEO Steve Ballmer has announced a major organisational shake-up at the company, confirming former Windows boss Julie Larson-Green as the new head of Xbox hardware.

Writing a memo to all Microsoft staff, Ballmer speaks of his vision for "One Microsoft" will enable the company to operate at "greater speed, efficiency and capability in a fast changing world."

Larson-Green, a 19-year veteran of the company, will now lead Microsoft's Devices and Studios Engineering Group, and will look after all of Microsoft's hardware development--including the Xbox brand.

As the head of Microsoft's Windows division, Larson-Green oversaw the launches of Windows 8 and Windows 7. She also led the visual redesign introduced in Microsoft Office 2007.

Former Microsoft boss Don Mattrick was reported to have been lined up for Larson-Green's new role, but recently departed Microsoft to join social gaming giant Zynga as its CEO.

Elsewhere in the company, former Windows Phone boss Terry Myerson will now head up the Operating Systems Engineering Group that will encompass all versions of the company's flagship operating system across console, mobile, and PC. The Applications and Services Engineering Group, led by Qi Lu, will focus on developing applications services, and search.

Former Skype boss Tony Bates will take charge of Microsoft's Business Development and Evangelism Group, and will work on strengthening the company's relationship with other manufacturers and developers.

"Lots of change," said Ballmer. "But in all of this, many key things remains [sic] the same. Our incredible people, our spirit, our commitment, our belief in the transformative power of technology--our Microsoft technology--to make the world a better place for billions of people and millions of businesses around the world. It’s why I come to work inspired every day. It’s why we’ve evolved before, and why we’re evolving now. Because we’re not done."

"Let’s go," concluded Ballmer.

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