Microsoft games operation trades execs with Electronic Arts

Microsoft's (NASDAQ: MSFT) has had several headaches with its game operations, the latest being the $1.1 billion charge the company took for Xbox warranty extension. Now, the head of that unit, Peter Moore, is leaving. He will run the sports division at video game giant Electronic Arts (NASDAQ: ERTS). Replacing Moore will be Don Mattrick, the former head of EA's studio operations.

While it would seem that all of this is a coincidence, that is probably too simple an explanation. Two companies, trading players on the same day.

Moore may have been able to weather the warranty problem for while, but he was not likely to be popular around Redmond. His boss, Robbie Bach, sold Microsoft stock as the Xbox problems emerged. He would have seemed the perfect scapegoat. But, Bach hung on.

Changing management may not fix the core problems at the unit. It still loses money. Revenue at the Entertainment and Device Division of Microsoft fell in Q1 from $1.165 billion in the quarter a year ago to $947 million. The unit lost $330 million.

Sending one guy off to EA is not going to fix that.

Douglas A. McIntyre is a partner at 24/7 Wall St.