Ballmer, who many analysts blame for Microsoft’s relative inertia over the last several years, stated that his retirement was timed in such a way that the incoming CEO could be instrumental in Microsoft’s new direction as a devices and services company.

Ballmer’s replacement will be selected by a special committee hand-picked by Microsoft’s Board of Directors, a committee which includes Board Chairman Bill Gates. Given Microsoft’s latest restructuring, candidates will likely have a background in interface design and electronic services.