Microsoft is understood to have appointed Adidas European advertising manager Indy Saha to be head of advertising at Xbox UK. It is understood that Saha, a former account director at advertising agency DFGW, will start next month.
Xbox has refused to confirm his appointment, but a spokeswoman says that the company has been looking to fill the role.
The move comes at a crucial time for the company as it gears up for the launch of its next-generation console to go up against a similar launch from rival Sony. Last month, the two companies slashed the prices of their PlayStation2 (PS2) and Xbox consoles in an attempt to boost sales in the run up to Christmas.
At the time, Sony also unveiled a smaller version of the PS2 and Microsoft responded by announcing the relaunch of the Crystal Xbox console. The new Playstation 2 is 75 per cent smaller than the current model.
Xbox is, however, reported to have ruled out launching a slimline version.