Who exactly do you think the CEO of Microsoft Gaming reports to? This is a pretty common corporate structure. I've worked under a total of 4 CEOs in a hierarchy before (CEO of an investment firm reports to CEO of the owning bank's European investment division reports to CEO of Europe reports to actual CEO).
It probably isnt and it should become an integral part of Microsoft Gaming within 3-6 months. There is nothing dramatically different between it and other gaming projects/units in MS Gaming. This is not a large enterprise acquiring a startup and letting them run independently.
