The woman in charge of Windows is poised to lead up all Microsoft's hardware division – including Xbox.
Julie Larson-Green is in pole position to lead hardware engineering, a role that Don Mattrick was previously favourite for, reports Bloomberg.
It could mean there will be no direct replacement for Mattrick at Microsoft.
As well as Xbox, Green will also lead up Microsoft's Surface tablets.
Bloomberg is keen to stereo that the restructuring of Microsoft's senior management has not yet been finalised, and Xbox chief Steve Ballmer may still shuffle roles.
Tony Bates, the previous president of Skype, may also take charge of acquisitions and relationships with software developers for the computing giant.