Microsoft chief executive Satya Nadella on Monday unveiled a leadership shakeup at the technology giant, including a new head for the Xbox division.

In an email to Microsoft employees, Nadella also formalized the role for former Nokia CEO Stephen Elop, saying he would head the Microsoft Devices Group when the deal for the Finnish group's handset business closes by the end of April.

Nadella said he had promoted Scott Guthrie, the acting chief for cloud and enterprise, to executive vice president, "where he will continue to lead and drive the organization."

The CEO said Guthrie "has been a very public and passionate evangelist for many of our most important developer and infrastructure businesses" and has made key contributions to "pivotal technologies that help power the Microsoft ecosystem today."

Phil Spencer was named "to take on a new role leading Xbox, combining the Xbox and Xbox Live development teams with the Microsoft Studios team," Nadella said.

"Combining all our software, gaming and content assets across the Xbox team under a single leader.. will help ensure we continue to do great work across the Xbox business, and bring more of the magic of Xbox to all form factors, including tablets, PCs and phones."

Elop will become executive vice president at Microsoft Devices Group, when Microsoft completes its acquisition of Nokia's handset unit, a $7 billion deal announced last year.

"We expect to close the acquisition by the end of April 2014," Nadella said.

"I've had a chance to work closely with Stephen, when he was previously a senior leader with Microsoft, as a key partner during his tenure as Nokia CEO, and again in the last several months as we've worked through the initial stages of integration planning. I look forward to working with Stephen as a key member of the senior leadership team and welcoming the Nokia Devices and Services employees to the Microsoft family."

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