I see their strategy and it makes sense, but in order to really compete, you have to have a decent enough presence to make a splash in the market. On video games, they are ok. On PC software, they are ok. They left the CE market. They have online advertising and search. They are about to enter the tablet and mobile markets. The only area where I feel that they are weak is in the phone market. After working in mobile market research, I just don't feel that they will make a decent enough splash to be relevant in the long run. They may just end up being a small market, niche player similar to how blackberry is now. At least they have the cash to play in everyone's sandbox.
I would love for them to get back into making decent games again, as they did in the early years of the xbox and xbox 360.
http://www.gamesindustry.biz/articles/2012-11-21-microsoft-were-no-longer-just-competing-with-traditional-console-companies
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