Elop was the former CEO of Nokia, which Microsoft announced it intended to purchase last year. Elop will replace Julie Larson-Green, who will shift roles from hardware over to Microsoft's My Life and Work team, a subdivision of the Applications and Services Group. Prior to her appointment as head of Xbox last year, Larson-Green was in charge of all Windows products.
At one point, Elop was in the running to replace Ballmer at Microsoft, at which point insiders claim he was considering selling off the Xbox division. Elop served as CEO of Nokia for three years.