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Don Mattrick, the president of Microsoft’s Interactive Entertainment Business — which focuses on the Xbox and all the software giant’s gaming and entertainment efforts — is leaving the company, according to AllThingsD who cites the word of multiple sources.  The sources also told AllThingsD that the high-profile executive is also close to taking a high ranking job at Zynga, possibly even as its CEO and working in close partnership with its founder and current CEO Mark Pincus.

The announcement of Mattrick’s appointment could be made as soon as today, after the markets close.

The news, if true, is a huge blow to Microsoft, especially since the company just announced its next generation Xbox, the Xbox One and will soon be competing in a high stakes game (no pun intended) against Sony in the latest iteration of the console wars.

While it would be bad for Microsoft, this could be just the right spark that Zynga needs to rebound after its troubling year.  We’ll keep an eye on this situation.  Stay tuned.

[Via AllThingsD.]

Update: In a press release, Zynga has confirmed that former Microsoft Interactive Entertainment President, Don Mattrick is now the CEO of Zynga and that current CEO and founder Mark Pincus will continue as Zynga’s chairman and chief product officer.  Mattrick will start next Monday and will also join the company’s board.

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