I don't think one should underestimate Microsoft and their ability to enter new markets. They won the Office market from WordPerfect, they beat Apple in O/S wars, they slashed Netscape in browser wars, they are currently winning the console wars with Xbox etc. etc.
Stating that they aren't a web company based on their frontpage is naive. They are excellent business people with lots of money - - just look what they are doing to Yahoo.
There's a difference between winning a market with better business practices and winning a market with a better product. All signs point to Microsoft's ability to do the former being stifled by everyone else's ability to do the latter.
"Winning the war" is such a terrible metaphor for measuring business success. (Winning the war is, relatedly, a poor metaphor for measuring military/political success, but that is an aside for an another day.)
Who "won the war" in selling food, McDonalds or Olive Garden? Who "won the war" in selling clothing, Walmart or Armani? Who "won the war" in entertainment, World of Warcraft or J.R.R. Tolkien?
(You might say that none of these business compete against each other, which I would say is accurate as far as it goes, but not distinguishing against the Microsoft or Nintendo example.)
Stating that they aren't a web company based on their frontpage is naive. They are excellent business people with lots of money - - just look what they are doing to Yahoo.