Microsoft to revv up smartphone, entertainment units

In a major shake-up this week, Microsoft has given chief executive Steve Ballmer direct control of its mobile and games division with the mandate to catch up with Apple Inc and Google Inc in the exploding smartphone market.

Analysts say the move points to its resolve to ride the next wave of computing.
 
Though it is not expected of the management change to beat the iPhone overnight, Microsoft known for the depth of its pockets and its ability to turn new technology to its advantage, will keep investing resources into mobile and gaming sectors, according to analysts.
 
They say Android and iPhone have such a massive lead, it is going to be a tough grind to catch up for Microsoft. However, given that it would be something they would have to do, failure would not be an option.

Microsoft laid out its vision of the future several years ago in - "three screens and a cloud" - the television, personal computer and phone, all connected by the internet.

There is much work to do for the software firm in the mobile market, given its fifth plane worldwide, behind Google's Android, Apple's iPhone, Research in Motion Ltd's BlackBerry and Nokia's Symbian system.

Microsoft's new Windows Phone 7 system is set to appear on phones during the holiday season and would be the last chance for the software giant to be in the reckoning in consumers' hearts and minds as new ways of computing start replacing the old.

According to analysts, Ballmer is likely to push every inch of the way with Windows Phone 7. At the launch of the system in Barcelona this year, he underlined the importance of the market to Microsoft.