The Wall Street Journal is reporting that Microsoft is planning a management shakeup in its Entertainment & Devices division, which includes its Zune, Xbox and Windows Phone activities. The newspaper cites the “increasingly bruising competition from Apple and Google” as a key factor in the reorganisation, which could see several major execs leave Microsoft. The company has already made a lot of changes, shifting Zune to a service rather than a range of devices, and unveiling its next-generation Windows Phone 7 smartphone operating system.

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