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Microsoft, historically, have been kings of the desktop. With the rise of the web (which post-dated MS's rise), the desktop has become less and less relevant. Google is fast replacing them - my email, documents, search, advertising, analytics is all handled by Google. I don't use Microsoft for anything in my day-to-day life. Even on my main windows machine, my files are in my dropbox, outside of MS's control.

MS are desperate to regain control. Google will soon launch their own web-centric OS properly, and bam, MS will have no business apart from selling to an ever-dwindling number of companies who can't believe MS don't rule the roost any more. In 20 years they will simply cease to exist if they can't come up with a world-beating online product and win back control of people's computing lives.

Notice how they're diversifying into games and search in order to prepare for the worst case; that their core OS and 'boxed software' business fails.




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