Microsoft restructuring Windows unit, says it won't lose money on Xbox One

|About: Microsoft Corporation (MSFT)|By:, SA News Editor

Two months after announcing a massive reorg (I, II), and a week after announcing the Nokia deal, AllThingsD reports Microsoft (MSFT +0.6%) is restructuring its Windows teams to tie PC, mobile, and Xbox software development closer together.

Among other changes, Terry Myerson, who was named the head of all OS development in the reorg, will have seven or more direct reports heading teams responsible for a variety of devices and services.

On the other hand, 3 other Windows execs, Grant George, Antoine Leblond (previous), and Jon DeVaan, aren't part of the new leadership team. It's unclear whether they'll get positions elsewhere at Microsoft or leave the company.

Meanwhile Xbox exec Yusuf Mehdi says Microsoft will either turn a profit or break even on the $499 Xbox One from the start. Mehdi adds the Xbox 360 is now "incredibly profitable," after factoring various revenue streams, and that the Xbox Live subscriber base is now at 48M users (up from 46M in April and 40M in Jan. '12).

Also: 1) Microsoft has brought its Xbox Music service, which has seen limited success competing in a crowded online music space featuring Pandora (P), Spotify, and others, to iOS and Android. 2) In stark contrast to Sony's gamer-focused PS4 marketing efforts, the first Xbox One TV ad (video) emphasizes the console's many TV/home entertainment features.