Nike has parted ways with Michael Jackson, who had been in charge of their basketball division for the past two years.

"The resignation follows underwhelming holiday season signature shoe releases in North America," pointed out Stifel analyst Jim Duffy in a note to clients on Wednesday.

Nike's global basketball is the company's second largest behind running, and pulled in over $3.7 billion in sales for the fiscal year ended May 31, 2015.

Nike will begin an eight-year, $1 billion deal with the NBA for the 17-18 season.

Despite strong interest in Under Armour's (UA) Stephen Curry basketball sneakers, Nike's LeBron and Kevin Durant lines "proved the most challenging" said Foot Locker. The company's chief, Richard Johnson, said Nike was starting to "reset the price relationship" on its signature basketball sneakers. In other words, Nike may be lowering some prices on LeBron and Durant styles in order to spur sales.