He also stresses that Microsoft will continue to invest in and value "fundamental research".
That's a load of bull. Just about every company that's had significant research institutions and has closed them down has suffered long-term from that choice. Xerox, Bell, IBM, and several others in telecom/computing alone have done this and suffered the consequences.
Fundamental research is what drives long-term profit. Sure, it costs money. But it also produces patentable products that can revolutionize the market and allow the company to profit from patent licensing even when they aren't interested in the market that the patent would apply to. Get rid of the research and the company's products go stale over time, no new ideas, rehashing of existing ones to the point that someone with new innovation comes along and steals away all of the customers. Short-term it might make more profit, but long term it's like selling one's investments for cash.
This is a terrible mistake for Microsoft.