Microsoft's Attempt for Relevancy
Microsoft just doesn't seem to get that it can't buy its way to relevancy. If it wants to be taken serious in the technology game, then it needs to stop buying companies and start innovating. But Steve Ballmer just doesn't seem to get it and unfortunately this hack is going to be around for another year before they find a replacement. Nokia's phone business will just be another collection into Microsoft's hoarding activities.
Microsoft needs to do the following: Spin Off two divisions that are doing extremely well, but their legacy products (Windows and Office) are a drag to their stock valuation. That means, Microsoft needs to spin off Xbox and their Internet Division. Their Internet Division is a lackluster, always losing money, so an independent CEO would make strives to make that spin off company into a formidable force or just let Yahoo! buy that division out, which will be great for Yahoo! as it will get its search business back.
Once Microsoft unloads those two divisions, then it can focus on software. It can focus on cloud computing and make Windows into a formidable force into cloud computing. Push all PC makers to make their computers all cloud base and create a direct competitor for the Google Chromebook. In addition, they can dedicate their attention to make their mobile OS division into another formidable force.
If Microsoft wants to directly become a direct competitor for Apple, then it needs to make their own computers and phones. It is apparent, this is the case with buying Nokia's phone division. Nokia's product design can put Apple's product design to shame, so they will be able to show a beautiful alternate to Apple's Iphone. But this tactic would make Linux OS systems a dominate OS in the computing market in 10 years, which Linux is already taking market share.
Microsoft's brands all have a stigma of distaste. They force feed their products to all their consumers, a tactic of which Google is doing with Google +. If Microsoft wants to stay relevant and be innovative, then it needs to stop buying relevancy and start encourage innovative growth within their own company. Microsoft use to be exciting, then they took over the world are now boring.
UPDATE: Microsoft removed the xbox one restrictions, initial sales were good; but, the battle is not over. Xbox One may finish last in this generation's console wars.