Microsoft Corp pushed out the chief of its division focused on mobile phones, videogames and other consumer devices on Tuesday, allowing two lower executives to report to Chief Executive Steve Ballmer.

The move comes as the world's largest software maker is being brushed aside by Apple Inc's iPhone and Google Inc's Android operating system in the fast-growing smartphone market.

A 22-year Microsoft veteran, Robbie Bach, 48, has led the entertainment and devices unit since its creation in 2005, and was responsible for the original launch of Xbox in 2001, will retire this autumn, Microsoft said.

From July 1, the two senior vice presidents in charge of games and phones, Don Mattrick and Andy Lees, respectively, will report to CEO Ballmer.

(Reporting by Bill Rigby; editing by Andre Grenon)