Remember, Microsoft has always been reactionary rather than inventive. They wait to see where the market is going and then jump in, pretending to be the guys who invented. This worked well for years. Also, they have so much money that they can (unfortunately) afford to fail big and shrug it off. Vista was a disaster for sure, but it's just a historical footnote now. When you don't have to be right and have the money to just restart from the ground floor, you can gamble. So Windows 8 is the result of Microsoft incorrectly reading the marketplace, specifically in believing that nobody wants to buy PCs and that 100% of the world wants tablets and almost nobody on earth will ever buy or use a true PC again. Never in the past have they been held accountable and lost market share for being disastrously wrong, so I can't really fault them for expecting that to continue. I don't remember his name, but one tech writer wrote recently that Microsoft will continue to misread the market place and try to extract more and more revenue from the segments where in the past they had a stranglehold but are actually dying now (ie. Windows and Office). The Xbox thing is them being reactionary ("Kids use Tivo and we need to get us some of that money!") and trying to hold onto cash by making it unfriendly to play used games on. I don't claim to be a gamer or understand or know that market, so we'll see what happens. But their Windows and Office strategy is flawed because the push for more money out of Office is already driving people to cheaper alternatives and making Windows unfriendly to the businesses who need it to work reasonably well on true PCs is going to be a failure too.