REDMOND, Wash. - Microsoft Corp. Chairman Bill Gates announced Thursday that he will transition from day-to-day responsibilities at the company he co-founded to concentrate on the charitable work of the Bill & Melinda Gates Foundation.

Gates will continue on as the company's chairman after transferring his duties over a two-year period.

“This was a hard decision for me,” said Gates, who founded the world's largest software company with childhood friend Paul Allen. “I'm very lucky to have two passions that I feel are so important and so challenging. As I prepare for this change, I firmly believe the road ahead for Microsoft is as bright as ever.”

Microsoft's Chief Technical Officer Ray Ozzie will immediately assume Gate's title.