"This is a significant shift, both in what we do and how we see ourselves - as a devices and services company," Ballmer wrote. "It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses."
This restructuring could impact Microsoft's Interactive Entertainment (Xbox) division, giving President Don Mattrick a larger role, the report says. Other top executives may see expanded responsibilities, including Satya Nadella, president of Microsoft's Servers and Tools division, and Tony Bates, president of the Skype communications division.
Last week, Nomura Equity Research analyst Rich Sherlund suggested Microsoft sell off its Xbox and Bing divisions, noting that shareholders may demand more influence in the company as they seek larger returns on their investments.
Sony, Microsoft's major console competitor, is currently considering an IPO of its entertainment division, following a proposition from Third Point LLC's Daniel Loeb.