Julie Larson-Green currently oversees Microsoft’s hugely profitable Windows division.
She will reportedly take over the new hardware engineering role within Microsoft. The position was originally intended for Don Mattrick, according to reports from Bloomberg.
The move means that there may be no direct replacement for Mattrick’s prevous role as head Interactive Entertainment at Microsoft.
As well as Microsoft’s Xbox division, Larson-Green will also have oversight of its Surface tablets.
The report stressed that senior management positions in the reshuffle have not been finalised yet. Steve Ballmer is reportly still considering shuffling some roles in the light of Mattrick’s departure.
Tony Bates, previously head of Skype, will also see an expansion of his role, it reports. He is expected to take charge of acquisitions and relationships with software developers.