Balmer's move to command the XBOX is.......... a bad move indeed.
He not only has the whole of Microsoft to worry about, but a side job as the head of the XBOX now, how can he put his full attention towards both? He also doesn't know all of the nuances of managing the XBOX, I think that Microsoft would be wise to put in somebody that has experience managing a console, say they snatch somebody from Sony or possibly nintendo.
Either way, MSFT makes a lot of bad decisions strategically. It doesn't seem rational that Balmer would be put in charge of the XBOX. Is Microsoft possibly wanting to demote Balmer to head of XBOX if there if MSFT's board of directors decides that he can't be CEO anymore? There have been many calls for his dismissal. Then again, you'd probably just want to give the CEO a nice exit bonus and boot him out of the company.
None of this makes sense but whatever MSFT, you are bringing your company to irrelevancy (slowly) by yourselves.