Microsoft plans to restructure its entertainment division and hand more control over its strategy in this area to executives that oversaw the development and launch of the Xbox 360 game console, The Wall Street Journal reported today.

As a result of the restructuring, Microsoft's entertainment and devices group will have four divisions, The Wall Street Journal reported, citing an internal Microsoft email as its source. These will include the entertainment business division, which will handle music, TV and video, and the interactive entertainment business division, which will oversee the gaming business, including the Xbox.

Robbie Bach, president of Microsoft's entertainment and devices division, will now take responsibility for the company's MSN Music business and manage Microsoft's relationships with partners, including music and movie companies, the report said. Bach, who led the development of the Xbox 360, assumed this role in September.

Other Xbox executives taking a larger role as a result of this restructuring include Bryan Lee, former head of finance for the Xbox division, who will manage the entertainment business division, and Peter Moore, who led the Xbox 360 marketing effort and will head the interactive entertainment business division.

J Allard, one of the Xbox 360 designers, will co-ordinate the strategy of all four divisions under Bach's entertainment and devices group.